On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction, temporarily halting the enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements. This decision delays the January 1, 2025, compliance deadline for reporting companies formed before 2024. Key Implications for Businesses: Recommendations for Businesses: How…
On February 16, 2024, we published a blog about the reporting requirements of the Corporate Transparency ACT (CTA). This past Friday, a federal court in the Northern District of Alabama issued a judgment declaring the CTA unconstitutional, citing its infringement upon the limits of Congress’ authority as outlined in the Constitution. As a result, the Financial Crimes Enforcement Network (FinCEN),…
The Corporate Transparency Act (“CTA”) was enacted by Congress as of January 1, 2024, as a preventative and combative measure to money laundering, terrorist financing, corruption, tax fraud, and other illegal activity. The CTA requires certain entities (each a “reporting company”) to identify itself, its primary owners and officers (each a “beneficial owner”), and in some cases, certain professionals who…
