On December 3rd, a U.S. federal court issued a preliminary nationwide injunction blocking the enforcement of the Corporate Transparency Act (CTA) and ruling that reporting companies need not comply with the CTA’s January 1, 2025 beneficial ownership information reporting deadline. In doing so, the court held that the CTA was likely unconstitutional. However, this ruling is not final and may be rescinded or modified either by the court that issued it or on appeal.
Since the reporting deadline for most reporting companies is just a few weeks away, we wanted to bring this dramatic development to our clients’ immediate attention. We intend to follow up with additional information in the coming days.
This update is intended to bring CTA developments to your attention and is provided for informational purposes only and does not serve to replace professional legal advice. This is a summary only, and you may wish to consult with us for legal advice before taking action.
