US Supreme Court Front Angle
In addressing a challenge to the Corporate Transparency Act requiring all entities to comply by December 31, 2024 and considering the imposition of a preliminary injunction to enjoin enforcement of the Beneficial Ownership Information report filing requirements, the District Court determined plaintiff could likely establish the unconstitutionality of the Corporate Transparency Act.
"Therefore, the CTA, 31 U.S.C. § 5336 is hereby enjoined. Enforcement of the Reporting Rule, 31 C.F.R. 1010.380 is also hereby enjoined, and the compliance deadline is stayed under § 705 of the APA. Neither may be enforced, and reporting companies need not comply with the CTA's January 1, 2025, BOI reporting deadline pending further order of the Court."
TEXAS TOP COP SHOP, INC., ET AL., Plaintiffs, v. MERRICK GARLAND, ATTORNEY GENERAL OF THE UNITED STATES, ET AL., Defendants., 4:24-CV-478, 2024 WL 4953814, at *37 (E.D. Tex. Dec. 3, 2024).
We anticipate the Department of the Treasury will re-evaluate its approach to the CTA in the coming months under the new administration.
Comments
There are no comments for this post. Be the first and Add your Comment below.
Leave a Comment