Effective December 2024, a federal judge has paused the Corporate Transparency Act (CTA) and its reporting rules.
What Happened?
The CTA, which required many small businesses to file Beneficial Ownership Information (BOI) Reports with FinCEN, has been put on hold by a federal court. On December 3, 2024, Judge Amos Mazzant ruled in Texas Top Cop Shop v. Garland (E.D. Tex.) that the reporting rules are likely unconstitutional.
The court determined that Congress likely doesn’t have the authority to require these filings under the Constitution. Judge Mazzant issued a nationwide injunction, which stops the government from enforcing the rules for now.
Here’s what the court decided:
- The CTA and its reporting rules are stopped nationwide.
- The January 1, 2025, deadline for filing BOI reports is on hold.
Small businesses do not need to file BOI reports unless the court’s decision is overturned
