Injunction Halts Corporate Transparency Act

For now, companies no longer need to submit a report under the Corporate Transparency Act.

In Texas Top Cop Shop v. Garland, the United States District Court for the Eastern District of Texas issued a preliminary injunction on December 3, 2024, enjoining the Corporate Transparency Act, enjoining enforcement of the reporting requirement, and staying the compliance deadline.

Put simply, the CTA is on hold. Companies do not need to comply with the reporting requirement, but this could change abruptly upon further order of the court or other legal developments.

This comes on top of the extension granted for complying with the reporting requirement for certain companies affected by recent hurricanes Beryl, Debby, Francine, Helene, and Milton.

The Corporate Transparency Act’s future is uncertain. Our firm is actively tracking developments on this issue. We will continue to post updates on our website; however, the nature of this issue, the risks involved, and next steps should be assessed on an entity-by-entity basis.

If you have any questions, please contact Christopher Batts at cbatts@shuffieldlowman.com or call our office at 407-581-9800.