December 04, 2024

 A U.S. District Court in Texas has issued a nationwide injunction against enforcement of the Corporate Transparency Act (CTA) and a stay of the compliance dealine (Texas Top Cop Shop, Inc. et al. v. Merrick Garland, Attorney General of the United States, et al.). In issuing the injunction, the court ruled that the CTA was likely unconstitutional and that its implementation would irreprably harm reporting companies if forced to comply. Unless or until this (or a higher) court specifically dissolves the injunction, neither the CTA nor its related regulations may be enforced, including the January 1, 2025 reporting deadline for existing companies and the 90-day reporting deadline for new reporting companies formed in 2024. However, as of the time of this writing, the FinCEN BOI E-Filing portal remains open, so presumably continued compliance efforts are possible on a voluntary basis. Immediate appeals are expected, and a legislative response is not out of the question, so the ultimate fate of the CTA remains unknown. Gilpin Givhan is closely tracking this recent development, and will provide updates as more information becomes available.