On December 3, Judge Amos L. Mazzant III of the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction preventing the federal government from enforcing the Corporate Transparency Act (“CTA”). He also issued a stay of the January 1, 2025, filing deadline pending the outcome of the litigation. Judge Mazzant found that Congress likely does not have the legislative authority to implement the CTA and require companies to report their ownership information to the Treasury Department’s Financial Crimes Enforcement Network.
While this is likely not the end of litigation related to the CTA, as things currently stand, entities that were previously required to file a Beneficial Ownership Information Report by the January 1, 2025 deadline are no longer required to do so. It is important to note that the injunction is only preliminary, and that the government could prevail on the merits of the permanent injunction, or be successful on appeal, which would reinstate the filing requirements.
As of now, the ruling means that entities are not obligated to file the Beneficial Ownership Information Report by the December 31, 2024 deadline. The attorneys at FGKS Law will continue to monitor developments related to the CTA litigation and update as needed. If you have any questions about how this development may impact you, please contact us today.
Original Publish Date: December 5, 2024
