Earlier this year, we advised regarding the Corporate Transparency Act (the “CTA” ) which went into effect on January 1, 2024 including reporting requirements for Reporting Companies.
Recently, on December 3, 2024, the United States District Court for the Eastern District of Texas, in the case Texas Top Cop Shop, Inc., et al. v. Garland, et al., E.D. Tex., Case No. 4:24-cv-00478-ALM issued a nationwide preliminary injunction enjoining the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) from enforcing the CTA.
Guidance subsequently issued by FinCEN confirms that pending resolution of the preliminary injunction, Reporting Companies are not required to, but may voluntarily, comply with the CTA’s reporting requirements and will not be penalized for failure to comply.
Should you have questions regarding the above, the Transactional Department at Cuddy & Feder LLP is here and ready to help.
