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

Advocacy

Jul 10, 2026

NAHB’s Monthly Update Features Landmark Housing Legislation Highlights

The talking points this month include information about how NAHB helped secure the passage of a historic housing bill.

IBS | Sustainability and Green Building

Jul 09, 2026

2027 IBS Sustainability & Green Building Scholarship Application Now Open

The NAHB IBS Sustainability and Green Building Scholarship aims to provide emerging green builders exposure to the world of high-performance homes and help them jump-start their professional journey by attending the International Builders’ Show (IBS). Applications are due Oct. 23.

View all

Latest Economic News

Economics

Jul 10, 2026

2025 New Single-Family Starts by Census Division

Persistently high mortgage rates, elevated costs for builders, and ongoing supply-side constraints continued to weigh on single-family construction in 2025.

Economics

Jul 09, 2026

Existing Home Sales Slowed in June

After reaching a five-month high last month, existing home sales pulled back in June as record-high home prices and elevated mortgage rates weighed on buyers. This monthly volatility reflects the sensitivity of home buyer demand to mortgage rate changes.

Economics

Jul 09, 2026

Remodeling Market Sentiment Remains in Positive Territory in Second Quarter

In the second quarter of 2026, the NAHB Remodeling Market Index (RMI) posted a reading of 61, down one point compared to the previous quarter. The RMI has remained in the low 60s consistently over the past year.