*This article is an update to the previous versions:
- The Corporate Transparency Act (Updated on 12/4/2024)
- The Corporate Transparency Act (Updated on 8/26/2024)
- The Corporate Transparency Act (Updated on 2/1/2024)
APPEAL OF TEXAS FEDERAL COURT RULING ENJOINING ENFORCEMENT OF THE CORPORATE TRANSPARENCY ACT
On December 5, 2024, the Government appealed the December 3, 2024, decision of the U.S. District Court for the Eastern District of Texas in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. which issued a preliminary nationwide injunction against the Corporate Transparency Act (Act).
Shortly thererafter, FinCEN posted an alert on its website announcing a stay on the January 1, 2025, beneficial ownership information (“BOI”) reporting deadline pending determination of the appeal. In its alert, FINCEN noted “in light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
As previously reported, the court’s order is a preliminary injunction only. While it temporarily pauses enforcement of the Act on a nationwide basis, enforcement could resume if the injunction is later reversed.
For additional information about the Texas Top Cop Shop case and its applicability to the Act visit www.caionline.org/CTA.