U.S. District Court Enjoins Corporate Transparency Act

Yesterday, December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction in favor of the plaintiffs in the case of Texas Top Cop Shop, Inc. et al. vs. Garland that enjoins the Department of Treasury from enforcing the Corporate Transparency Act (31 U.S.C. § 5336) and the Reporting Rule (31 C.F.R. 1010.380) and issued a stay on the deadline that requires reporting companies to file their Beneficial Ownership Information reports by January 1, 2025. 

In the ruling the Court stated: “…that the CTA and Reporting Rule are likely unconstitutional for purposes of a preliminary injunction. [However the Court] has not made an affirmative finding that the CTA and Reporting Rule are contrary to law or that they amount to a violation of the Constitution.”

Please note this is a preliminary injunction, and we urge you to pay attention for additional updates and proceedings in this and other cases which could modify or change this order.