Earlier this week, a U.S. District Court in Texas granted a preliminary injunction suspending the enforcement of the Corporate Transparency Act (CTA) nationwide prior to the upcoming January 1, 2025 compliance deadline.
As explained in more detail here, the CTA requires new and existing companies to disclose to the Financial Crimes Enforcement Network (FinCEN) of the Treasury Department certain beneficial ownership information (BOI) about the individuals who ultimately own or control those reporting companies.
It is important to note that the enforcement of the CTA could resume at any time if the Court’s recent order is modified or overturned on appeal as the order is not a final decision.
We will continue monitoring developments in this area and provide our clients with updates but we also advise those clients yet to file to monitor the developments on their own given the approaching January 1, 2025 compliance deadline.
