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
Aug 08, 2025
Lumber Talking Points Featured in NAHB’s Monthly UpdateThe update provides the latest messaging framework to help members articulate housing priorities and latest news related to Canadian lumber duties.
Aug 07, 2025
Podcast: Federal Home Loan Bank Leader Shares Insights into Current Mortgage MarketOn the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez are joined by Council of Federal Home Loan Banks CEO Ryan Donovan to spotlight how the home loan bank system can support housing development, especially affordable housing, and what the system is doing for the economy.
Latest Economic News
Aug 08, 2025
Weaker Demand for Residential Mortgages in Second QuarterIn the second quarter of 2025, overall demand for residential mortgages was weaker, while lending standards for most types of residential mortgages were essentially unchanged, according to the recent release of the Senior Loan Officer Opinion Survey (SLOOS).
Aug 07, 2025
Multifamily Developer Confidence Increases in Second QuarterThe Multifamily Production Index (MPI) was up two points year-over-year to 46. The Multifamily Occupancy Index (MOI) had a reading of 82, up one point year-over-year.
Aug 06, 2025
Mortgage Applications Tick Up in July as Rates Ease SlightlyMortgage application activity picked up in July as interest rates eased modestly. The Mortgage Bankers Association’s (MBA) Market Composite Index, which tracks mortgage application volume, rose 2.4% from June on a seasonally adjusted basis. Compared to July 2024, total applications were up 24.5%.