Nationwide INJUNCTION against enforcement of BOI reporting requirements

Yesterday, December 3, 2024, the US District Court in the Eastern District of Texas issued an injunction against the US Attorney General prohibiting enforcement of the Treasury Department's "Financial Crimes Enforcement Network" BOI reporting requirements. (See posts below for a brief history of the CTA provisions applicable to most small businesses).  In Texas Top Cop Shop v. Garland, Judge Amos L. Mazzant issued a preliminary injunction against the Corporate Transparency Act (31 U.S.C. § 5336) (the “CTA”),

“[t]he Court has determined that the CTA and Reporting Rule are likely unconstitutional for purposes of a preliminary injunction. It has not made an affirmative finding that the CTA and Reporting Rule are contrary to law or that they amount to a violation of the Constitution.”

...

 “…the CTA, 31 U.S.C. § 5336, is hereby enjoined. Enforcement of the Reporting Rule, 31 C.F.R. 1010.380 is also hereby enjoined, and the compliance deadline is stayed under § 705 of the APA. Neither may be enforced, and reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.”

Owners are still permitted to file the BOI report if they so choose.  The constitutionality of the CTA is already before the 11th Circuit Court of Appeals arising from NSBU v. Yellen, No. 24-10736 (11^th Cir.), and this matter may ultimately be determined by the United States Supreme Court.

Stay tuned!