With less than a month until the December 31, 2024 deadline for millions of small businesses throughout the U.S. to file their FinCEN beneficial ownership interest report, a Federal Court in Texas has issued a preliminary injunction against the enforcement of the Corporate Transparency Act’s (CTA) beneficial ownership reporting requirements, citing constitutional concerns. The Court’s decision, at least for the time being, halts the enforcement of CTA requirements, which mandate that certain businesses report information regarding their beneficial ownership to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
Please note that the Court’s order is a preliminary injunction only and not a final decision. The Court’s order temporarily pauses enforcement of the CTA on a nationwide basis, but enforcement could resume if the Court’s order is overturned on appeal, or the Government ultimately prevails on the merits.
We will continue to monitor the developments in this case. In the meantime, if you have any questions regarding this recent ruling or how this effects your business, please contact one of our corporate attorneys at 941.748.0100. To learn more about FinCEN, please refer to What You Need To Know About FinCen Reporting prepared by business and corporate attorneys Jenifer Schembri, Matthew Lapointe, and Michael Huckle.
