CTA – Eastern District of Texas Injunction
Late Tuesday afternoon (December 3, 2024), we learned that the U.S. District Court in Texas has enjoined the enforcement of the Corporate Transparency Act (the “CTA”) in part due to the question of whether the CTA is constitutional and beyond the powers instilled to Congress. For reference, this was decided in a case titled Texas Top Cop Shop, Inc. v. Merick Garland, Civil Action No. 4:24-CV-478, E.D., Texas.
Why This Matters: Under the ruling, Reporting Companies with a reporting deadline of January 1, 2025 no longer have to file a Beneficial Owner Information report. It is likely that the government will challenge this ruling. However, at this time, compliance with the January 1, 2025 deadline proscribed in the CTA is not required.
We will continue to review and monitor this situation. Please feel free to reach out to Rich Bar (rbar@gkglaw.com) or Frank Beninato, III (fbeninato@gkglaw.com) in the meantime if you have any questions.
Rich Bar and Frank Beninato, III
GKG Law