BREAKING: FEDERAL COURT HALTS CORPORATE TRANSPARENCY ACT ENFORCEMENT
On December 3, 2024, a federal district court in Texas issued a nationwide preliminary injunction, temporarily blocking the implementation of the Corporate Transparency Act (CTA). Under the CTA, certain non-exempt businesses were required to disclose their Beneficial Owners to the Financial Crimes Enforcement Network (“FinCEN”) not later than January 1, 2025. This ruling suspends reporting requirements under the CTA.
Do I still have to Register with FinCEN?
- -There is no legal requirement to register as of this writing.
- -BUT, a preliminary injunction is not a final decision on the merits of a claim. There could be an appeal and/or the United States Department of Justice (“DOJ”) could seek a stay of the injunction pending appeal. While we do not know what will transpire, the Order is not permanent and the status quo could change rapidly.
What Should I Do Now?
- -Keep Alert for Updates. Things can change quickly in a matter like this. If a stay of the order terminating the registration requirement is granted, the requirement to register by January 1, 2025 could be immediately reinstated.
- -Stay Prepared. Gather or keep the materials necessary for registration at hand so you are ready to register if the requirement is reinstated. At this time, the registration site remains open and is accepting registrations. Please understand, however, that as of this writing, you are under no legal obligation to do so.
- -Consult your legal counsel. Your lawyer is likely monitoring the status of this case. Feel free to communicate!
What Should I Do If I Already Filed with FinCEN?:
- -Nothing More is Required. You do not have to take any further action or rescind your filing.
- -Stay Informed: Keep track of legal proceedings and potential policy changes to the extent they affect existing filings.
We're Here to Help
Salzmann Hughes, P.C. is closely monitoring the situation and is ready to assist your business in navigating the complexities of the Corporate Transparency Act. Our experienced attorneys can provide guidance in your specific circumstances and help you develop a compliance strategy that aligns with your business needs.
Read the full 79 page court opinion: Texas Top Cop Shop, Inc. v. Garland, E.D. Tex., No. 4:24-cv-00478, 12/3/24.
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