In light of recent developments, WR would like to correct last week’s article regarding compliance with the Corporate Transparency Act (CTA). 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 CTA in Texas Top Cop Shop v. Garland et al. The court found the CTA likely unconstitutional, citing concerns about privacy violations, compelled speech, and federal overreach.
The CTA, designed to combat money laundering by requiring businesses to disclose beneficial ownership information to the U.S. Treasury Department, has faced significant criticism for its compliance burdens and privacy implications. Judge Amos Mazzant’s ruling highlighted these issues, imposing a nationwide injunction halting the Act’s enforcement.
This decision means that businesses are not currently required to file Beneficial Ownership Information (BOI) reports. However, businesses should remain prepared as the government is expected to appeal.
