On Dec. 3, 2024, a federal district court in Texas issued a nationwide preliminary injunction preventing the federal government from requiring certain businesses to report their “beneficial owners” to the U.S. Department of the Treasury by January 1, 2025. This reporting requirement was passed by Congress in the Corporate Transparency Act, which is a law intended to help the Treasury Department target illicit financial activity. The Texas district court concluded that the CTA’s reporting requirement was unconstitutional and, therefore, it issued the preliminary injunction.
Background for those of you who missed our CTA article in our fall edition, the CTA requires millions of small business owners to register with the Financial Crimes Enforcement Network, or FinCEN, by mid-January, or potentially pay fines of up to $10,000.
