ARTICLE
The Corporate Transparency Act (CTA) and its implementing regulations, which require U.S. business entities (mostly small businesses) to report ownership and leadership information to the Treasury Department's Financial Crimes Enforcement Network (FinCEN), were preliminarily blocked nationwide by a Texas federal court earlier this week. The injunction comes just weeks before the Jan. 1, 2025 deadline for compliance with reporting requirements. The injunction only temporarily bars the Treasury Department from enforcing reporting requirements at this time. However, further guidance or court decisions could reinstate the CTA’s enforceability and businesses may need to act quickly to meet reporting deadlines. –FCA
The Corporate Transparency Act (CTA) and its implementing regulations, which require U.S. business entities (mostly small businesses) to report ownership and leadership information to the Treasury Department's Financial Crimes Enforcement Network (FinCEN), were preliminarily blocked nationwide by a Texas federal court earlier this week.
The injunction comes just weeks before the Jan. 1, 2025 deadline for compliance with reporting requirements. The injunction only temporarily bars the Treasury Department from enforcing reporting requirements at this time. However, further guidance or court decisions could reinstate the CTA’s enforceability and businesses may need to act quickly to meet reporting deadlines. –FCA