Just as many of you may were preparing to file your Beneficial Ownership Information reports (“BOI”) with the Financial Crimes Enforcement Network (“FinCEN”), a Federal Court judge out of Texas entered a temporary injunction.
On Dec. 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction enjoining the federal government from enforcing the Corporate Transparency Act (the “CTA”). This means the FinCEN, a Bureau within the Treasury Department, cannot currently enforce the BOI Reporting Rule enacted under the CTA. The lawsuit asserted that the CTA is outside of Congress’s power to regulate under the Commerce Clause and, thus, is unconstitutional. The Court preliminarily ruled that the “CTA is likely unconstitutional as outside of Congress’s power.” As a result, the Court enjoined enforcement of the CTA and stayed the January 1, 2025 reporting deadline.
Stayed tuned as this story continues to develop!