Skip to Content
Logo
Menu
  • About Our Firm
  • Practice Areas
  • Our People
  • Learning Library
  • Corporate Transparency Act
  • Contact
  • Make A Payment

Nationwide Injunction Halts Corporate Transparency Act Reporting Requirements

Nationwide Injunction Halts Corporate Transparency Act Reporting Requirements

December 5, 2024

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction in Texas Top Cop Shop, Inc., et al. v. Garland, et al., temporarily halting enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements. This injunction suspends the January 1, 2025, filing deadline and applies to businesses across the United States.

Key Implications for Our Clients:

  1. For Clients Who Have Already Filed:
    No immediate action is required. However, clients must continue to monitor any changes in beneficial ownership, as future filings may be needed to update BOI reports as needed  if the injunction is overturned or modified.
  2. For Clients Who Have Not Filed:
    Filing is not required while the injunction is in place. However, businesses should prepare for potential compliance if the Texas District Court’s decision is reversed or the scope of the injunction is narrowed. Preparatory steps may include:
    • Obtaining a FinCEN identifier to streamline future reporting.
    • Gathering information to facilitate the BOI filing if necessary.

Uncertain Legal Landscape:
While the injunction is currently nationwide, the government may seek to narrow its scope to apply only to the named plaintiffs in the case or challenge the ruling on appeal. If successful, reporting companies could face a compressed timeline to comply with the CTA’s reporting requirements.

The FINCEN E-Filing System portal remains open if clients wish to proactively submit their BOI reports or prepare for future compliance.

FinCEN’s Response:

The Department of Justice filed a Notice of Appeal on December 5, 2024, asserting its belief in the constitutionality of the CTA and citing favorable rulings from other courts. Meanwhile, FinCEN confirmed it will comply with the order during litigation, clarifying that reporting companies are not required to file BOI reports or meet the reporting deadline but may do so voluntarily.

Next Steps:
CCM will continue monitoring developments and provide updates as the case progresses. For additional resources, visit the CCM CTA Resource Library.

Related Attorneys

Kenneth W. Clingen
Member
Joseph Ranieri
Associate
Clingen Callow & McLean, LLC
Lisle Office
2300 Cabot Drive, Suite 500
Lisle, Illinois, 60532
Phone 630.871.2600
Geneva Office
21 North 4th Street
Geneva, Illinois, 60134
Phone 630.938.4769
Fax 630.871.9869
General Inquires [email protected]
  • facebook
  • linkedin

Contact Us

©2025 Clingen Callow & McLean, LLC. All rights reserved.

Law Firm Web Design by NMC

Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}