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Federal Court Hits Pause on Corporate Transparency Act Reporting Requirements

Posted on: Dec 5, 2024
News: News
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A federal district court in Texas has halted the reporting requirements under the Corporate Transparency Act (CTA), providing relief – at least temporarily – to millions of businesses and compliance teams across the country rushing to comply with the reporting requirements by the end of the year. The CTA, designed to combat illicit activities by bad actors concealing their identities through shell companies and other means, required many businesses to report detailed ownership information to the Financial Crimes Enforcement Network of the Department of the Treasury.  Now, the nationwide preliminary injunction granted by the court in Texas Top Cop Shop, Inc. v. Garland, E.D. Tex., No. 4:24-cv-00478 (Dec. 3, 2024), leaves the future of the CTA and required compliance in limbo while businesses are left to ponder what’s next. Businesses within the CTA’s purview should keep their ears to the ground, as the injunction is not final and could be overturned or otherwise modified in the future.

About the Authors

Trevor J. Haynes, Chair, Business Transactions Committee and
Helena N. Henderson, NOBA Executive Director