On Dec 3, 2024, a federal judge in Texas granted a nationwide temporary injunction against the Corporate Transparency Act (CTA), which required all businesses operating in the US with an EIN (roughly 32.6 million) to file a Beneficial Ownership Information Report (BOIR).
This report required companies to disclose the personal information of all beneficial owners including current address, government issued identification documents, and other personal information.
Attorney General Ken Paxton stated that “The so-called ‘Corporate Transparency Act’ was an unconstitutional attempt by the federal government to undermine States’ authority and crush small businesses under regulations, fines, and threats.” The ruling states that “reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.”
This means FinCEN cannot enforce the extensive penalties it was planning to impose on businesses that didn’t file accurately and on time, until further notice. As of November, over 8 million BOI reports have already been submitted to FinCEN.
Please keep in mind that a temporary injunction is not a final decision. The government may appeal this decision to the US Supreme Court, which would reinstate all filing requirements, but unless this injunction is dissolved, companies are currently not required to comply with these filing requirements.
If you have questions around this topic, please reach out to your legal counsel.
