Corporate Transparency Act Injunction

On Dec. 3, the U.S. District Court for the Eastern District of Texas issued a nationwide injunction that prohibits enforcement of the Corporate Transparency Act (31 U.S.C. §5336) and the Reporting Rule (31 C.F.R. 1010.380). It also stayed the end-of-year compliance deadline for filing Beneficial Ownership Information (BOI) reports. As a result, reporting companies need not comply with the CTA’s Jan. 1, 2025, BOI reporting deadline pending further order of the court. 

While the reporting obligations have been temporarily placed on hold, the injunction is preliminary and already facing scrutiny. The duration of the injunction, as well as the new reporting deadline should it be overturned, is uncertain. 

Per a Financial Crimes Enforcement Network (FinCEN) Alert: Impact of Ongoing Litigation – Deadline Stay – Voluntary Submission Only, FinCEN will comply with the order for as long as it remains in effect. Therefore, reporting companies are not currently required to file their BOI with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. While the obligation to file BOI reports has been paused, FinCEN will continue to accept voluntary submissions.