A preliminary injunction issued by a Federal Court in Texas on December 3, 2024, effectively halts the implementation of the Corporate Transparency Act (CTA) nationwide. This ruling temporarily suspends the requirement for businesses to submit their Beneficial Owner Information (BOI) to the Financial Crimes Enforcement Network (FinCEN) by the previous deadline of January 1, 2025.
For businesses, this means the following:
- No Immediate Reporting Requirements: Businesses that were classified as “reporting companies” under the CTA are no longer obligated to submit their BOI to FinCEN until further notice. The injunction pauses the reporting process while the Court examines the constitutionality of the CTA.
- Ongoing Legal Review: While the injunction temporarily stops the CTA’s implementation, the legal battle surrounding its constitutionality is ongoing. Businesses should stay informed about developments related to the CTA and monitor any further rulings or decisions that may affect future compliance requirements.
- No Permanent Ruling Yet: The Court’s decision is not permanent and only represents a temporary pause in the law’s enforcement. A final ruling will determine whether the CTA will be fully implemented, revised, or overturned.
In summary, businesses should be aware that the CTA’s reporting requirements are on hold for now. We will keep you informed of legal updates as the case progresses through the courts.
Please reach out with any questions.