09 Dec Important Update on the Corporate Transparency Act (CTA)
On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act (CTA).
While this pause creates some uncertainty, it’s important to understand the potential next steps and what this means for your business.
What’s Happening?
The court’s injunction is temporary and FinCEN is expected to appeal. If the appeal succeeds, the CTA’s requirements—including the December 31, 2024, deadline—could quickly be reinstated. If the appeal fails, the enforcement pause may extend, but this is far from certain.
Why Consider Filing Now?
Here’s why you may want to stay the course and file your BOI report:
- Be Ready for Any Outcome: The appeals process could reverse the injunction at any time. Filing now ensures your clients are prepared and won’t be caught off guard.
- Avoid the Last-Minute Rush: If the CTA enforcement resumes, those who haven’t filed may face a rush to meet deadlines. Being proactive reduces stress for everyone.
- The CTA was a Bipartisan Bill: This bill was passed by congress to combat money laundering and terrorist financing, supported by both sides of the aisle. Congress might have to make a few changes to the bill, but it is highly unlikely that it will go away.
What to Do Next
For now, you may want to stay the course and continue filing to maintain compliance readiness. If circumstances change, you will already have a solid foundation in place.
We’re closely monitoring the situation and will keep you informed of any updates.
Thank you for your business and partnership.
Original content by the National Crime Search. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.