On December 3, 2024, in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al., the U. S. District Court for the Eastern District of Texas (Sherman District) issued a preliminary injunction against the Corporate Transparency Act.
In the opinion, the Court stated that the Corporate Transparency Act and its Implementing Regulations are likely unconstitutional. Accordingly, the Court issued a nationwide preliminary injunction on the enforcement of the Corporate Transparency Act and its impending January 1, 2025 filing deadline. In summary, this means that all entities that are considered "reporting companies" under the Corporate Transparency Act, including small businesses and community associations, and who have yet to file their "beneficial owner information" with FinCEN can press the pause button until a final determination on the constitutionality of the Corporate Transparency Act can be determined.
It is important to note that this is a preliminary injunction and is subject to change. To this end, we urge you to pay attention to all future client alerts regarding this preliminary injunction.
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.
