UPDATE: Beneficial Ownership Reporting Requirements Reinstated; New Deadline Jan. 13
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.
Latest from NAHBNow
Feb 06, 2026
A Message from Jim Chapman, Candidate for NAHB 2026 Third Vice ChairmanThe election for Third Vice Chairman will take place at the Leadership Council meeting during the 2026 International Builders' Show.
Feb 06, 2026
Learn About the 2024 IECC in Free Video Series for NAHB MembersNAHB is now offering members a free educational video series on the 2024 International Energy Conservation Code. The videos break down key differences between the 2024 IECC and past editions, focusing on changes that improve usability and what they mean for construction costs.
Latest Economic News
Feb 06, 2026
The Size of the Housing Shortage: 2024 DataPersistently low homeowner and rental vacancy rates indicate that the U.S. housing market remains structurally undersupplied.
Feb 05, 2026
Job Openings Fall as Labor Market WeakensRunning counter to the data for the full economy, the count of open, unfilled positions in the construction industry increased in December, per the delayed Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from two years ago due to declines in construction activity, particularly in housing.
Feb 04, 2026
Mortgage Rates Declined Despite Higher Treasury YieldsLong-term mortgage rates continued to decline in January. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.10% last month, 9 basis points (bps) lower than December. Meanwhile, the 15-year rate declined 4 bps to 5.44%. Compared to a year ago, the 30-year rate is lower by 86 bps. The 15-year rate is also lower by 72 bps.