We want to inform you about a significant legal development regarding the Corporate Transparency Act (CTA). A federal court in Texas has issued a nationwide injunction blocking the implementation of the CTA and its requirement for businesses to report beneficial ownership information to the Treasury Department.
This ruling, issued on December 3, 2024, challenges the CTA’s authority under the Constitution’s Commerce Clause, asserting that the law exceeds Congress’s regulatory powers. As a result, the CTA’s reporting deadlines, including the January 2025 compliance date for most businesses, are now on hold. The injunction pauses the enforcement of the BOI reporting requirements and January 1, 2025 deadline nationwide.
While this decision temporarily suspends reporting requirements, it may be subject to appeal. The ruling could be modified, overturned or superseded by further legislation changes or court decisions at any time. We recommend staying prepared in case the ruling is overturned.
We will continue to monitor any updates regarding this matter. If you have questions about how this impacts your compliance obligations, feel free to reach out to our team or check in with your law firm should they have additional perspective.