Current CTA Update: Government Filed Notice of Appeal

On December 3, 2024, a federal judge of the Eastern District of Texas issued a nationwide preliminary injunction against enforcement of the Corporate Transparency Act (CTA) and its implementing regulations. The court ruled that "reporting companies need not comply with the CTA's January 1, 2025, BOI reporting deadline pending further order of the court." The court ordered that enforcement of the CTA is prevented until a final decision is made as to whether the CTA is constitutional.

Since the December 3rd Order was issued, FinCEN has posted the following notice to its website: "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."

What's Next?

While the Government filed a Notice of Appeal on December 5, 2024 to contest the Order, as for now, reporting companies do not have to comply with the CTA.  The attorneys here at Stone Pigman are following the latest developments and expect to provide an update in the future.