On December 3, 2024, the United States District Court for the Eastern District of Texas issued a preliminary injunction blocking the enforcement of the reporting requirements under the Corporate Transparency Act (the “CTA”). The injunction applies nationwide. Due to the court’s decision, the United States Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued a notice confirming 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.”
Under the CTA, which went into effect on January 1, 2024, certain businesses (each, a “Reporting Company”) were required to file a Beneficial Owner Information Report (“BOIR”) with FinCEN. In the BOIR, a Reporting Company is required to report all beneficial owners of the Reporting Company, which include individuals who, directly or indirectly, own or control 25% or more of the Reporting Company or exercise substantial control over it.
The United States Department of Justice has appealed the district court’s decision. Depending on the outcome of such appeal, the reprieve from the CTA’s reporting requirements may only be temporary. LimNexus will continue to monitor this and other cases related to the CTA for further developments.
Firm Contacts
For assistance with any CTA related inquiries please contact any of the following LimNexus attorneys: