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On December 3, 2024, the U.S. District Court for the Eastern District of Texas granted a preliminary injunction barring the U.S. Department of the Treasury from enforcing the Corporate Transparency Act (“CTA”) and its mandatory reporting requirement. As such, the January 1, 2025 compliance deadline is temporarily stayed. The scope of the preliminary injunction is nationwide.
Of note, this matter is still being actively litigated and the Court only issued a preliminary injunction in the lawsuit (Texas Top Cop Shop, Inc., et al. v. Garland, et al.). Although this temporarily pauses enforcement of the CTA, enforcement of the CTA and its mandatory reporting requirement could resume at a later date.
The outcome of this lawsuit is uncertain at this time, and those associations that have already complied with the mandatory reporting requirement have acted reasonably by complying with the CTA. Those associations that choose not to file based on this ruling should be prepared to gather and file the required information/documentation on an expedited basis if the preliminary injunction is dissolved or limited in scope.
For further updates and questions regarding the status of the CTA and its enforceability, please reach out to your association’s legal counsel. For associations who are not currently working with our Firm, but are interested in doing so, please contact Manager of Client Relations Diane Weissberg at 1-877-31FIORE or by email at dweissberg@fiorelaw.com for assistance.
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