As we continue to keep you updated on important matters relating to the Corporate Transparency Act ("CTA"), a significant legal development may impact filing obligations under the legislation.
On 3 December 2024, the United States District Court for the Eastern District of Texas issued a nationwide injunction on the CTA in connection with the case Texas Top Cop Shop, Inc., et al, vs Merrick Garland, Attorney General of the United States.
Based on our current understanding, this ruling effectively suspends the enforcement of the CTA and its associated requirements pending further order of the court. The Amended Memorandum Opinion and Order can be accessed here, and we encourage consultation with US legal counsel to understand the potential implications and to determine whether any action is required regarding your US entities in light of these developments.
On 5 December 2024, the Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal and issued a statement saying, "In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports". Read the full statement.
The current situation is dynamic and based on our discussions, may evolve as this case progresses through the courts. We will continue to monitor these developments and further updates will be issued in due course.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
