Sean Bryan’s article, “Enforcement of Corporate Transparency Act Suspended,” discusses the temporary suspension of nationwide enforcement of the Corporate Transparency Act (CTA).
On December 3, 2024, a U.S. District Court issued a preliminary nationwide injunction in Texas Top Cop Shop, Inc., et al. v. Garland, halting enforcement of the CTA. The ruling temporarily prohibits its enforcement, prompting the U.S. Department of the Treasury to immediately appeal the decision to the U.S. Circuit Courts.
Following the injunction, FinCEN announced on December 9, 2024, through its Beneficial Ownership Interest (BOI) reporting portal, that it will not enforce the CTA requirements while the injunction is in effect. Companies that do not file BOI reports during this time will not face liability. However, FinCEN clarified that companies may continue to submit BOI reports voluntarily.
Currently, no guidance has been provided on whether a grace period will be offered for BOI reporting if the injunction is lifted. Businesses choosing not to file during this suspension should remain vigilant and be prepared to comply promptly if enforcement resumes.