Federal District Court Enjoins Enforcement Of U.S. Corporate Transparency Act
For companies founded before January 1, 2024 the first reporting deadline is January 1, 2020; for companies formed in 2024 the 90-day period to submit the required information begins on January 1, 2025. The DOJ may seek to lift the stay on a more expedited basis. Thus, we believe it may be prudent for companies subject to the end-of-year filing deadline to continue to prepare their CTA filings.
In its opinion, the Texas court held that the requirements of the CTA went beyond the scope of Congress’s authority to regulate corporate operations.
As you may recall, an Alabama federal court previously declared the CTA unconstitutional in March; that decision, however, was limited in its applicability to the parties of the particular lawsuit and other persons subject to the Alabama court’s jurisdiction. In that case, the DOJ appealed to the Eleventh Circuit. That appeal is still pending. )
We are following this situation closely and will keep you apprised of any further developments.
If you have any questions, please feel free to contact your regular contacts at the firm.
An update to this alert memorandum was issued on December 9, 2024: DOJ Appeals CTA Injunction; FinCEN Suspends Filing Requirement
