New Development – Corporate Transparency Act 12/4/24

NEW DEVELOPMENT – Corporate Transparency Act

On December 3, 2024, the U.S. District Court for the Eastern District of Texas granted a nationwide injunction that enjoins the federal government from enforcing the Corporate Transparency Act (“CTA”).

The Court’s order blocks the federal government from enforcing the CTA and the upcoming January 1, 2025, deadline for filing beneficial ownership information reports. To be clear, the preliminary injunction prevents the government from enforcing the requirement to file any beneficial ownership information reports, regardless of the deadline.

The Court’s order is a preliminary injunction and not a final decision. While the Court’s order temporarily pauses enforcement of the CTA, enforcement could resume if the Court’s order is overturned on appeal or the federal government ultimately prevails on the merits.

Abrahams Kaslow & Cassman LLP will continue to monitor the status of the CTA and provide pertinent updates to our clients. If you have any questions regarding the CTA, please call (402) 392-1250.

If we have already made the CTA filing on your behalf, no further action is required.