On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit reinstated the enforceability of the Corporate Transparency Act (CTA). The preliminary injunction previously issued against enforcement of the CTA has been lifted, effective immediately, resulting in the reinstatement of mandatory compliance with the CTA by non-exempt reporting companies. What This Means: The reporting deadline (previously December 31, 2024) for non-exempt companies formed before January 1, 2024 is again in effect, however, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) extended the deadline to January 13, 2025. Any reporting companies that have not yet filed …
Federal District Court in Texas Has Ruled Corporate Transparency Act (CTA) Likely Unconstitutional; Nationwide Preliminary Injunction Issued
— This ruling has been updated. Click here to see the new update. — A Federal District Court in Texas has ruled that the Corporate Transparency Act (CTA) is probably unconstitutional and issued a nationwide preliminary injunction that precludes its enforcement. Click here for a copy of the decision of Judge Amos Mazzant in Texas Top Cop Gun Shop, Inc. v. Merrick Garland, Attorney General of the United States, Case No. 4:24-CV-478 (E.D. Tex). Congress enacted the CTA as an anti-money laundering effort, and the Act requires most small businesses to disclose beneficial ownership information (including social security numbers and …
The Corporate Transparency Act – What You Should Know
**UPDATE** Federal District Court in Texas Has Ruled Corporate Transparency Act (CTA) Likely Unconstitutional; Nationwide Preliminary Injunction Issued Original Article: WHAT IS THE CORPORATE TRANSPARENCY ACT? In 2021, Congress enacted the Corporate Transparency Act (CTA) to combat certain financial crimes, such as money laundering. After many revisions and updates, the rules went into effect in 2024. The CTA requires certain businesses to report ownership and other information to the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) for inclusion in FinCEN’s database. Beginning in 2024, many small businesses are now required to report this information, referred to as …