On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a NATIONWIDE preliminary NATIONWIDE injunction against the Corporate Transparency Act (Act). See Texas Top Cop Shop, Inc., et al. v. Garland, et al. In the underlying case, the Plaintiff argued that Congress essentially “overreached” its authority over the States in compelling them to adopt the requirements of the Corporate Transparency Act. The U.S. District Court ultimately granted the Plaintiff’s request to preliminary enjoin the Government from enforcing the Corporate Transparency Act and its Implementing Regulations, ruling that “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.”  

This preliminary injunction applies nationwide, thus halting enforcement and compliance of the CTA’s beneficial ownership reporting requirements across the entire United States.  For those community association board members who have already taken action and complied with the CTA’s reporting requirements, you have taken the responsible route and acted in accordance with the CTA.  For those who have not yet filed, and until the Court’s injunction is overruled and lifted, compliance with the CTA by 12/31/24 is no longer required. We recognize the situation is complex especially because we are so close to the reporting deadline. It is also important to note that the preliminary injunction is temporary and that the decision may evolve and/or change. The Court’s full opinion can be viewed here.

For more information about this article, contact Katerina Tsoukalas-Heitkemper at kheitkemper@tresslerllp.com.