Amid the ongoing legal battle over the Corporate Transparency Act (the “CTA”), updates continue to roll in. On December 5, 2024, the U.S. government filed a notice of appeal to the U.S. Court of Appeals for the Fifth Circuit (the “Fifth Circuit”) from the decision of the U.S. District Court for the Eastern District of Texas (the “Court”) to enjoin the CTA. The CTA has made headlines this month as the January 1, 2025, deadline for most reporting companies to file beneficial ownership information (a “BOI Report”) was quickly approaching. However, on December 3, 2024, the Court delivered a major rebuke of the CTA, granting a nationwide injunction of the CTA and its reporting rules, and holding that it is “likely unconstitutional as outside of Congress’s power” in the case Texas Top Cop Shop Inc. et al. v. Garland et al. To Read Stella Lellos and Lindsay Brocki's full article, please visit https://lnkd.in/gKQY_j9m #CorporateTransparencyAct #corporate #rivkinradler #CTAupdate
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🚨 BREAKING NEWS: Texas Federal Court Halts Corporate Transparency Act 🚨 A federal court in Texas has issued a nationwide preliminary injunction, blocking enforcement of the Corporate Transparency Act (CTA) and its beneficial ownership reporting requirements. This means reporting companies are not required to comply with the January 1, 2025 deadline for now. The ruling temporarily pauses enforcement, but the decision could change if the injunction is reversed. Stay informed and learn more about the case and its implications here: www.caionline.org/CTA #LegalUpdate #CorporateTransparencyAct
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BREAKING NEWS: Federal Court Rules Corporate Transparency Act Unconstitutional! 🚨 Corporate Transparency Act (CTA) unconstitutional. The court found that the CTA exceeded Congress's power under the Commerce Clause and the Necessary and Proper Clause. As a result, a nationwide preliminary injunction was issued, pausing the enforcement of the CTA and its Beneficial Ownership Information (BOI) reporting rule. This ruling has significant implications for businesses, as the BOI reporting deadline set for January 1, 2025, has been put on hold. The court did not address First and Fourth Amendment concerns raised by plaintiffs but emphasized the law's overreach. The case is likely to be appealed, and we can expect further legal developments. For now, the decision marks a critical juncture in the ongoing debate over corporate transparency and regulatory power. Stay tuned for updates! #CorporateTransparency #LegalUpdate #BusinessLaw #FederalCourt #Compliance
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More legal challenges to the Corporate Transparency Act ("CTA")!!! In Boyle v. Yellen, an individual has filed a complaint in a federal court in Maine arguing that the CTA is unconstitutional, leaning on many arguments made in NSBA v. Yellen. There is also a case pending in Ohio. Despite these court cases, FinCEN is NOT pausing the online filing system and is moving forward (other than for the plaintiffs in NSBA v. Yellen). If you have a Jan. 1, 2025 filing deadline, you may want to hold off for a bit. I love getting things done sooner rather than later, but the law is evolving! #CTA #corporatetransparencyact #beneficialownership #taxcompliance
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Associate Attorney at Menn Law Firm, Ltd. Estate Planning, Probate & Trust Administration Attorney. Passionate about helping clients navigate the estate and probate process and maximizing wealth and legacy preservation.
🚨 Corporate Transparency Act (CTA) Update 🚨 ⚖️ The U.S. District Court for the Eastern District of Texas has issued a nationwide injunction temporarily halting enforcement of the CTA and its reporting requirements. 🔎 The court found that the CTA and its Reporting Rule are likely unconstitutional for the purposes of granting the preliminary injunction. Importantly, this is not a final ruling on whether the CTA itself violates the Constitution or is otherwise unlawful. 📅 This injunction affects the January 1, 2025 deadline for reporting beneficial ownership information, pausing enforcement nationwide. 💡 What Does This Mean? This is a temporary measure that halts enforcement while the case proceeds. The injunction, or at least its nationwide scope, will likely be appealed. In addition, FinCen is expected to issue guidance regarding the ramifications of the injunction in the coming days. Advisors and business owners should monitor developments as this case unfolds. 📜 Read the court's full opinion and order here:
cta-v-garland-district-court-opinion-preliminary-injunction.pdf
polsinelli.gjassets.com
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The Corporate Transparency Act has been found unconstitutional. On March 1, a Federal District Court Judge in Alabama ruled that the CTA exceeds the limit of Congress' power in a case brought by the National Small Business Association and additional plaintiffs. The ruling holds that the Federal government is permanently prohibited from enforcing the CTA against the plaintiffs in the lawsuit. So, what does that mean for you? We expect that the Court’s rationale and decision in this case will apply nationwide resulting in a temporary halt to enforcement of the CTA as appeals are considered. Read more: https://lnkd.in/eEwUAKjV #breakingnews #corporatetransparencyact #unconstitutional #businesslaw
Corporate Transparency Act Found Unconstitutional - Davis, Agnor, Rapaport, & Skalny
https://www.darslaw.com
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Following this closely ~ happy to answer any questions as we navigate the landscape of this new law and its challenges! You can read the opinion here: https://lnkd.in/gxigX8AY
Although existing entities covered by the Corporate Transparency Act (“CTA”) should still plan to comply with the beneficial ownership reporting (“BOI”) requirements, a new federal district court ruling offers hope that the requirements may change. On March 1, 2024, the Federal District Court in the Northeastern Division of Alabama ruled last Friday that the CTA is unconstitutional in National Small Business United, d/b/a the National Small Business Assoc. v. Yellen. Read the full alert here: https://bit.ly/49OXbJw #CTA
Corporate Transparency Act Update: Federal District Court Rules CTA Unconstitutional
lathropgpm.com
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Please see below for an update on CTA requirements and enforcement by my Benesch Law colleagues! Let us know how we can help. #corporatetransparencyact #corporatecompliance
We don’t know exactly what the enforcement landscape of the Corporate Transparency Act will look like. Despite this Alabama ruling, Benesch Law is advising clients it’s business as usual until we know more. Check out our client alert here https://lnkd.in/gnvEsXTU
Those Subject to the Corporate Transparency Act Should Continue to Comply with its Requirements
beneschlaw.com
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Ben Halpern provides an important update for reporting companies following a recent nationwide preliminary injunction, which has temporarily halted the enforcement of the Corporate Transparency Act (#CTA). As a result, the January 1, 2025 deadline for filing the Beneficial Ownership Information Report is now on hold until further notice. While the CTA reporting requirements are currently suspended, Ferguson Braswell Fraser Kubasta PC will continue to monitor the situation and provide updates. Legal proceedings may reverse the injunction, potentially reinstating the CTA reporting obligations. #FBFKLaw #CorporateTransparencyAct #LegalUpdate #ReportingRequirements
Court Suspends Enforcement of Corporate Transparency Act
https://www.fbfk.law
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Corporate transparency act judge rules is unconstitutional. I think it needs to researched more thoroughly before we start telling clients not to follow/ file.
Partner at AbitOs PLLC and Managing Member at AbitOs Advisors LLC
Judge Burke has found the CTA to be unconstitutional as it goes beyond Congress' power limits. This decision was reached without even considering whether it violates the First, Fourth, and Fifth Amendments. Although the litigation is expected to continue in the federal court system, small businesses have won the initial victory. This also means that compliance with this regulatory regime can be put on hold for the time being.
Nelson Mullins - U.S. Corporate Transparency Act: CTA is Declared Unconstitutional in U.S. District Court Case
nelsonmullins.com
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Partner @ Norton Rose Fulbright | Mergers & Acquisitions | Insurance Sector Transactions | Corporate Law | Private Equity
Many of our clients have had questions about the new Corporate Transparency Act, including which business entities need to file an ownership report and whether any exemptions apply. A recent federal court ruling suggests an additional wrinkle: Is the Corporate Transparency Act unconstitutional? Read more below for the latest. #corporatetransparencyact #fincen #corporatelaw
Andrew Lom and Rachael Hashmall discuss the limited applicability of Alabama’s federal district court ruling that the Corporate Transparency Act is unconstitutional. https://ow.ly/Ecqu50QO7g0
Corporate Transparency Act ruled unconstitutional by district court
nortonrosefulbright.com
