Update on the Corporate Transparency Act
On December 3, 2024, the United States District Court for the Eastern District of Texas issued a preliminary nationwide injunction regarding the reporting requirements and deadlines of the Corporate Transparency Act (CTA). While this ruling is at odds with those of multiple other federal courts, it does at least temporarily prohibit the United States Treasury Department from enforcing the CTA, and stays the January 1, 2025 reporting deadline. Whether this pause will last days, weeks, months, or be permanent is unclear at this point. Reporting companies have the options of either filing now or waiting until the reporting requirements are reinstated, if they are. If the reporting requirements are reinstated before the current January 1, 2025, filing deadline, then reporting companies will still need to meet that deadline. We are reviewing the complete decision and will monitor for guidance from the US Financial Crimes Enforcement Network, as well as the expected appeal.
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