Insights

Federal Court Issues Injunction on Corporate Transparency Act Beneficial Ownership Reporting Requirements

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.

Prompt Assistance for Business Under the Families First Coronavirus Response Act

The IRS has announced that guidance will be released next week providing that eligible employers who pay employees under the new requirements for paid sick time or child care leave under the new Law will be entitled to retain payroll taxes due to the IRS in an amount equal to the amount of the qualifying paid sick time and child care leave that they paid, rather than deposit those amounts with the IRS.

Reduced Sales Tax on Commercial Leases

Effective January 1, 2020, the general Florida sales tax due on commercial leases will be reduced from the current 5.7% rate to 5.5%. This reduction in sales tax is applicable only to rental payments that are for a lease period that is on or after January 1, 2020....

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