CTA Paused... For Now

On December 3, 2024, a federal district court in Texas issued a nationwide preliminary injunction temporarily enjoining enforcement of the Corporate Transparency Act (“CTA”). The decision effectively suspends the CTA’s reporting requirements, which were set to take effect on January 1, 2025. The court concluded that the plaintiffs were likely to succeed on their constitutional challenges to the CTA.

The injunction halts the requirement for businesses to report beneficial ownership information to the Financial Crimes Enforcement Network (“FinCEN”). However, the ruling is not a final judgment on the constitutionality of the law; further legal proceedings are expected. Notably, on December 5, 2024, the government filed an appeal to oppose the preliminary injunction.

Although compliance deadlines are on hold for now, companies are advised to monitor developments closely. If the injunction is overturned or narrowed on appeal, it is possible deadlines could be reinstated with little notice.

Legal developments like these can shift quickly. Wright Beamer is always ready to help you navigate the complexities of the Corporate Transparency Act and keep your business compliant. Reach out to us today at 248.477.6300 to ensure you're ready for whatever comes next.