Breaking News: Corporate Transparency Act on Hold Nationwide
Nationwide Injunction on Corporate Transparency Act Issued by Texas Court
On October 22nd, we notified you about your obligations under the Corporate Transparency Act (CTA) and its upcoming compliance requirements. If you are unfamiliar, the CTA requires certain U.S. businesses to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) to combat money laundering, fraud, and other illicit activities.
On Tuesday, December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide injunction temporarily halting enforcement of the CTA. The court ruled that the CTA likely surpasses Congress’s constitutional power and is not justified by the Congressional authority to enact “Necessary and Proper” laws or to lay and collect taxes.
The injunction prevents the U.S. Department of Treasury from enforcing the CTA’s reporting requirements. This means that the CTA’s January 1, 2025 deadline for reporting companies to submit their initial FinCEN report is currently inoperative. Developments in this case are likely to occur rapidly or without advance warning, and it is unclear whether the changes will include an extension of the deadlines outlined in the CTA.
The team at Saper Law will continue to closely monitor the situation and provide updates as needed.
About Saper Law
Saper Law is an award winning intellectual property, social media, entertainment, and business law firm with headline grabbing clients and cases. For more information about this case, contact Daliah Saper at ds@saperlaw.com or 312.527.4100, or visit www.saperlaw.com.
