On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction temporarily halting enforcement of the Corporate Transparency Act (CTA). The decision, made in Texas Top Cop Shop, Inc. v. Garland indicated that the CTA and its reporting rules are likely unconstitutional for purposes of granting the injunction.
The key implication of the injunction is that enforcement is currently halted. The injunction prohibits FinCEN from taking any enforcement actions related to the CTA until further notice. As such, Companies are currently not required to file their Beneficial Ownership Report with FinCEN by January 1, 2025.
This injunction is a preliminary measure, and further legal proceedings may alter its impact. Our team is closely monitoring this evolving situation and will advise you of any updates.
If you have questions or need assistance, please don’t hesitate to contact us.