Nationwide preliminary injunction blocks enforcement of the Corporate Transparency Act

On December 3, 2024, the U.S. District Court for the Eastern District of Texas granted a nationwide preliminary injunction blocking the enforcement of the Corporate Transparency Act (CTA) which requires U.S. reporting companies to report beneficial owner information to the U.S. Treasury. With less than four weeks remaining, this preliminary injunction relieves millions of reporting companies from complying with the January 1, 2025 filing deadline pending further order of the Court.

At this time, reporting companies need not comply with the January 1 deadline. However, it is possible that the preliminary injunction could be lifted which could require reporting companies to comply quickly with CTA requirements.  We will continue to monitor developments and keep our clients updated on any changes impacting CTA compliance, and we encourage reporting companies to monitor further updates and proceedings regarding CTA compliance. A copy of the Court order can be found here.

Please do not hesitate to contact us at any time if you have any questions or concerns.