Corporate Transparency Act
A federal district court, finding that the Corporate Transparency Act (CTA) is likely unconstitutional, issued an order, a temporary and preliminary injunction, Tuesday, December 3, 2024, prohibiting the enforcement of the CTA and the beneficial ownership information (BOI) reporting rule in the CTA’s accompanying regulations.
The injunction, which according to the court should apply nationally, was issued in Texas Top Cop Shop, Inc. vs. Garland, No. 4:24-CV-478 (E.D. Texas 12/3/24).
Under the injunction, the CTA and the BOI reporting rule cannot be enforced, and reporting companies need not comply with the CTA’s Jan. 1, 2025, BOI reporting deadline pending a further order of the court.
The AICPA has recommended that while the case is pending, the information needed to prepare the report should be gathered and businesses should be prepared to file the BOI report in the event that there is a reversal and the injunction is lifted.
Below please find a letter with an overview of the Corporate Transparency Act, and the new requirements related to reporting of Beneficial Ownership Information.
This is a critically important issue for everyone with any type of business interest, with possibly severe consequences if the rules are not followed.
Please take a few minutes to read this letter.
We regret that we are unable to give you advice on this matter. If you have any further questions, please seek advise from your legal counsel.
