The U.S. Court of Appeals for the Fifth Circuit has reinstated the enforcement of the Corporate Transparency Act (CTA), overturning a nationwide injunction that previously blocked its Beneficial Ownership Information (BOI) reporting requirements. This decision allows the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) to enforce the law starting January 1, creating significant challenges for over 32 million small businesses across the nation.

The National Federation of Independent Business (NFIB), which brought the lawsuit, expressed deep disappointment, citing the immense burden the law places on small business owners. “This decision will lead to chaos for small businesses as they scramble to meet these unreasonable requirements,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. NFIB is committed to appealing the ruling and continues to advocate for the Repealing Big Brother Overreach Act, which would permanently eliminate the CTA’s reporting mandates.

The BOI requirements are part of the CTA’s broader effort to combat financial crimes, but critics argue the statute disproportionately impacts small businesses with compliance costs and administrative burdens. NFIB warns that this ruling could have devastating consequences for small business owners nationwide.

BOI can be filed here.