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December 3, 2024

Corporate Transparency Act

Nationwide Injunction of the Corporate Transparency Act
On Tuesday, December 3, 2024, a federal district court in the Eastern District of Texas, Sherman Division, issued a significant order in Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478. The court granted a nationwide preliminary injunction that halts enforcement of the Corporate Transparency Act (CTA) and its regulations requiring the reporting of beneficial ownership information (BOI). This injunction also stays all deadlines for compliance with these reporting requirements.

FinCEN issued the following statement regarding the decision,
 

"While this litigation is ongoing, FinCEN will comply with the order issued by the U.S. District Court for the Eastern District of Texas for as long as it remains in effect. Therefore, reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership information reports."

Important Takeaways For Beneficial Ownership Information Reporting

FinCEN has issued a notice stating that reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. If you are uncertain whether to file a BOI report, we urge you to seek an attorney’s guidance as RASi cannot provide legal advice.
 

CTAComply™ Users

CTAComply™ users may still access our portal for previously entered information or to prepare new beneficial owner reports. However, the FinCEN API is currently unavailable. If you prepare a filing, we will notify you once CTAComply™ is transmitting filings again. You will need to log into the portal to pay and submit your filing.