Enforcement of Corporate Transparency Act Halted by District Court Figure

December 5, 2024  |  Insights

Enforcement of Corporate Transparency Act Halted by District Court

By: Kayla Perry

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act (CTA).

The CTA went into effect earlier this year and requires many small and mid-sized businesses to report certain personal information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Judge Mazzant concluded the CTA is likely unconstitutional in that it exceeds Congress’s constitutional authority and issued an order temporarily halting this reporting requirement nationwide.

While businesses are not currently required to make any filings under the CTA, it is anticipated that this will be appealed to the Fifth Circuit Court of Appeals, and the outcome remains uncertain. Rich May is recommending not to make any filings while the injunction is in effect.  However, we are available to assist any businesses that have not yet made their filings and wish to remain proactive and continue to prepare the information and forms necessary to make their filings to FinCEN if and when the injunction is lifted.

Disclaimer: This summary is provided for educational and informational purposes only and is not legal advice. Any specific questions about these topics should be directed to Kayla Perry.

© 2024 by Rich May, P.C. and Kayla Perry. All rights reserved.

About Rich May. P.C.

Rich May, P.C., a law firm founded in 1937 and located in the heart of Boston’s financial district, concentrates its practice on corporate, financial, civil litigation, energy, real estate, entertainment and wealth planning matters. The firm’s clients include a broad group of businesses in New England and throughout the country. Rich May provides the breadth and depth of expertise generally associated with large, national firms, while maintaining the prompt, personal service found in smaller, regional firms. Rich May’s clients have direct access to experienced attorneys who are familiar with both the client and the area of inquiry and can provide timely and practical legal solutions.

Rich May has been elected and admitted as a member of Ally Law. This membership, which provides affiliations with more than 2,800 lawyers at over 70 firms in 50 countries, supplements our ability to assist clients throughout North America and around the world.