The Corporate Transparency Act (CTA) is designed to increase transparency and combat financial crimes by requiring many U.S. companies to report their beneficial ownership information ("BOI") to the Financial Crimes Enforcement Network (FinCEN). However, a recent legal action has temporarily paused these requirements...
What Happened?
In early December, a federal court in Texas issued a nationwide preliminary injunction, halting enforcement of the CTA’s reporting requirements.
On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., halting the enforcement of the CTA's beneficial ownership information reporting requirements. The court's decision effectively stays all deadlines for compliance until further notice.
This means companies are not currently required to file their beneficial ownership information with FinCEN, and no penalties will be issued for non-compliance during this time.
Despite the pause, FinCEN is still accepting voluntary submissions from companies that wish to file.
What Does This Mean for You + Your Business?
For now, the reporting deadlines are on hold.
However, businesses should stay prepared. The injunction may be lifted if the government’s appeal is successful, and compliance could be required in the future.
We recommend that you stay prepared + informed by:
- Continuing to gather the necessary information;
- Keep the info handy to ensure compliance if / when the requirements are reinstated; +
- Stay Updated: The pause creates uncertainty, so staying informed is critical. You can follow updates directly from FinCEN by visiting their website here: https://fincen.gov/boi.
Need Guidance?
If you’re unsure how this development impacts your business or need help preparing for potential reporting obligations, contact us. Our team is here to help navigate this evolving legal landscape and ensure you’re prepared for any changes.
Current PB Law Clients can schedule a BOI / CTA Q+A Meeting here:
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Read More about the CTA:
- Tiffany Ballenger Floyd, Esq. | Managing Partner, Phillips Ballenger Estate Attorneys | Licensed in NV + CA