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On Tuesday, December 3, 2024, a federal district court in the Eastern District of Texas, Sherman Division, issued a significant order in Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478. The court granted a nationwide preliminary injunction that halts enforcement of the Corporate Transparency Act (CTA) and its regulations requiring the reporting of beneficial ownership information (BOI). This injunction also stays all deadlines for compliance with these reporting requirements.
What This Means for You
FinCEN has issued a notice stating that 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.
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