Injunction Halts BOI Reporting Requirements

A federal district court in Texas has issued a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act’s (CTA) beneficial ownership reporting requirements.

The court determined that Congress exceeded its authority in passing the CTA, leading to an unconstitutional interference with states’ rights to regulate businesses. As a result, the court has prohibited FinCEN from enforcing the January 1, 2025, reporting deadline for all reporting companies.

The decision, issued on December 3, 2024, is expected to be appealed. For now, however, businesses are not required to file beneficial ownership information reports with FinCEN.

Stay tuned for further updates and information regarding BOI reporting.