UPDATE: Beneficial Ownership Reporting Requirements Reinstated; New Deadline Jan. 13

Legal
Published
Contact: Jeff Augello
[email protected]
AVP, Association Counsel
(202) 266-8490

The U.S. Court of Appeals for the Fifth Circuit yesterday stayed a previous order temporarily halting implementation of the Corporate Transparency Act (CTA) and its beneficial ownership reporting obligations for certain corporations and limited liability companies. As a result, reporting companies now must comply with the new requirements.

FinCEN, the enforcement agency for the rules, issued an alert extending the deadline to Jan. 13 from Jan. 1 in light of yesterday’s decision.

As reported in a recent NAHBNow blog post, on Dec. 3, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction temporary halting implementation of the CTA and its beneficial ownership reporting obligations. The district court’s decision effectively relieved reporting companies of their obligation to comply with the CTA’s Jan. 1, 2025, reporting deadline.

In a down-to-the-wire effort to preserve the Jan. 1 deadline, the Department of Justice (DOJ), on behalf of the Treasury Department and other federal defendants, immediately filed a notice of appeal with the Fifth Circuit. A few days later, DOJ followed up with an emergency motion seeking a stay of the district court’s injunction pending appeal.

The fifth circuit yesterday determined that the "government has demonstrated that a stay is warranted" and temporarily blocked enforcement of the lower district court's order and injunction pending appeal. The decision cited Congress's broad Commerce Clause authority to regulate entities engaged in commercial activities, the infliction of irreparable harm to the government, and a balance of equities favoring the public's urgent interest in combating financial crimes and national security versus the minimal reporting burden placed on reporting companies.

Although the Fifth Circuit order did not delay any reporting deadlines, FinCEN has since released an alert on the matter with reporting deadline extensions, including the new Jan. 13 date.

 

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Sponsored Content

Nov 26, 2025

6 Practical Ways Builders Can Cut Cycle Time When Every Day Costs Money

Cycle time isn’t just a scheduling issue. It’s a profit issue — one that grows quietly until it owns your entire operation. But there are strategies to help mitigate those challenges to keep your business running smoothly.

Housing Finance

Nov 25, 2025

Fannie Mae, Freddie Mac Conforming Loan Limits to Rise to $832,750 in 2026

The Federal Housing Finance Agency (FHFA) today announced that the maximum baseline conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2026 will rise to $832,750, an increase of $26,250 from 2025.

View all

Latest Economic News

Economics

Nov 26, 2025

Property Taxes by State – 2024

Nationally, across the 87 million owner-occupied homes in the U.S., the average amount of annual real estate taxes paid in 2024 was $4,271, according to NAHB analysis of the 2024 American Community Survey.

Economics

Nov 25, 2025

Share of New Homes with Decks Edges Lower

The share of new homes with decks edged down from 17.6% in 2023 to a new all-time low of 17.4% in 2024, according to NAHB tabulation of data from the HUD/Census Bureau Survey of Construction (SOC).

Economics

Nov 25, 2025

Building Material Prices Continued to Rise in September

Aggregate residential building material prices rose at their fastest pace since January 2023 in the latest Producer Price Index release from the Bureau of Labor Statistics. Input energy prices increased for the first time in over a year, while service price growth remained lower than goods.