BREAKING NEWS:
FEDERAL COURT ISSUES SWEEPING ORDER PROHIBITING ENFORCEMENT OF CORPORATE TRANSPARENCY ACT
POSTED DECEMBER 5, 2024
BY: MELISSA DEL VALLE, SENIOR LEGAL COUNSEL
On December 3, 2024, in Texas Cop Shop, Inc., et al. v. Garland et al., the United States District Court for the Eastern District of Texas, issued a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act (CTA). The CTA mandates companies to file Beneficial Ownership Information reports with the Financial Crimes Enforcement Network (FinCEN).
WHAT YOUR OPTIONS ARE NOW:
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WAIT-AND-SEE. Given the nationwide injunction, no business is currently required to comply with the CTA. While you can wait and see what happens next, you should be aware that further court decisions can reinstate the CTA’s enforceability.
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PREPARE THE REPORT AND MONITOR THE CASE. Businesses that have not filed with FinCEN can delay filing their Beneficial Ownership Information reports. However, if the preliminary injunction is overturned on appeal, businesses may need to act expeditiously to meet reporting deadlines.
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FILE NOW. You still have the option to file now, regardless of the injunction.
For more information on the CTA, generally, read MIAMI REALTORS’ legal update HERE. As always, MIAMI REALTORS is committed to ensuring that you have the information you need to thrive in your businesses. We will continue to keep you posted on the status of litigation concerning the CTA.
TOOL KIT: MUST-KNOW ANSWERS TO YOUR TOP QUESTIONS. These are the top questions about the federal court’s nationwide preliminary injunction that you submitted to MIAMI REALTORS® – with short answers.
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