Late last night, the U.S. District Court for the Eastern District of Texas issued an order granting a nationwide preliminary injunction temporarily blocking the government from enforcing the reporting requirements of the Corporate Transparency Act (“CTA”).
The CTA, which became effective earlier this year, is a federal law requiring certain businesses to report information about their ownership to the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”). Under the CTA, businesses created this year have been required to report information regarding their beneficial owners to FinCEN within ninety (90) days of their creation, while those in existence prior to January 1, 2024, have until January 1, 2025, to report. For now, the injunction temporarily suspends those deadlines on a nationwide basis. However, businesses should remain cautious as enforcement could resume if the order is appealed and/or the injunction is later reversed.
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