Kevin L. Shepherd

The Corporate Transparency Act (CTA) rollout has experienced twists, turns, and intrigue that would rival those found in an Agatha Christie novel. Congress passed the CTA in 2021 with the goal of combatting money laundering and other financial crimes by requiring millions of small businesses to report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).

After a rollercoaster ride last week, the Corporate Transparency Act's (CTA) nationwide preliminary injunction remains in place for the immediate future, pending further review by the U.S. Court of Appeals for the Fifth Circuit (Fifth Circuit). This means that the deadline of January 1, 2025, for the filing of initial beneficial ownership interest reports (BOIRs) for reporting companies created or registered before January 1, 2024, is no longer in effect.

On December 3, 2024, the federal district court in the Eastern District of Texas issued an order (Order) for a nationwide preliminary injunction against enforcement of the Corporate Transparency Act (CTA) in Texas Top Cop Shop, Inc. v. Garland.[1] Despite the Order, we recommend continuing efforts to be prepared to file beneficial ownership information reports (BOIRs) before the end of the year with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury.