CTA Reporting Update: Pause on Reporting Requirement

A U.S. District Court in Texas issued a nationwide injunction on December 3, 2024, temporarily blocking enforcement of the Corporate Transparency Act (CTA) and its associated Beneficial Ownership Information (BOI) Reporting Rule. This injunction halts the requirement for businesses to file BOI reports with the Financial Crimes Enforcement Network (FinCEN) by the January 1, 2025, deadline. The court's decision stems from concerns that the CTA may be unconstitutional. While this ruling stops enforcement for now, the federal government could resume enforcement if the U.S. District Court in Texas finds that the CTA is constitutional, or the federal government successfully overturns the temporary injunction on appeal. 

LDM’s Course of Action

At this time LDM has paused on filing reports for clients until further clarification from the courts has been issued. If you have questions, please reach out to Erin K. Artz.