Legal News: Federal Judge Temporarily Blocks Corporate Transparency Act Enforcement

December 04, 2024 | Corporate and Commercial | Press Release

On December 4, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act (CTA). While the CTA has been paused nationwide—a month before its deadline—another Federal Court could interpret the CTA differently, causing confusion by issuing an order conflicting with the Texas court decision. Alternatively, Congress could amend the CTA, effectively nullifying the Texas court decision. If this happens, businesses may still need to file the required BOI (Beneficial Ownership Information) Report the U.S. Department of the Treasury’s Financial Crimes Enforcement Network’s (FinCEN).

Read more about the decision here.

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