A new decision by the U.S. Court of Appeals for the Fifth Circuit has once again paused enforcement of the Corporate Transparency Act (CTA). This development comes after a series of back-and-forth rulings that have caused confusion for cattle producers and other small businesses. According to Kent Bacus, Executive Director of Government Affairs for the National Cattlemen’s Beef Association (NCBA), the most recent court action reinstates the injunction and gives producers another temporary break from filing beneficial ownership information with the U.S. Treasury.
The sequence of legal decisions began on December 3, when the U.S. District Court for the Eastern District of Texas halted the CTA by issuing a preliminary injunction. On December 23, a panel of the Fifth Circuit reversed that injunction, prompting the Financial Crimes Enforcement Network (FinCEN) to set a filing deadline of January 13, 2025, for required reports. However, on December 26, the full Fifth Circuit reversed its own ruling, placing the CTA on hold once again.
For now, FinCEN has suspended enforcement of the CTA and will accept voluntary reports. Bacus recommends that cattle producers consult with their attorneys or tax professionals about their reporting obligations. On Christmas Eve, NCBA sent a letter to Treasury Secretary Janet Yellen, urging a delay in enforcing the mandate. In addition, NCBA is encouraging Congress to pass legislation that would permanently protect cattle producers from these requirements.
Producers are advised to stay informed about future rulings or legislative actions, as the situation remains fluid.
Sabrina Halvorson
National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet News Hour and The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.