Nationwide injunction halts BOI reporting for now.
A federal district court ruled Tuesday that the Corporate Transparency Act (CTA) is likely unconstitutional, issuing a nationwide injunction to block enforcement of the CTA and its beneficial ownership information (BOI) reporting requirements. The injunction, issued in Texas Top Cop Shop, Inc. v. Garland (E.D. Texas, Dec. 3, 2024), suspends the January 1, 2025, BOI reporting deadline until further court action.
The Financial Crimes Enforcement Network (FinCEN), responsible for enforcing the CTA, is reviewing the decision, noting that similar requests have been denied by other courts. The Justice Department has not commented on a possible appeal.
The AICPA acknowledged the ruling’s potential impact and advised CPAs assisting clients with BOI reporting to remain prepared: “Under this injunction, FinCEN is barred from enforcing BOI filing requirements while the case is pending — technically the deadlines are still in effect. While it is unlikely that the injunction will be lifted prior to the final outcome of the proceedings, we advise being prepared in the event that there is a reversal”