Earlier today, we sent out a reminder alert on the pending deadline for filing beneficial ownership information under the federal Corporate Transparency Act and implementing rules (CTA). Later today, the U.S. District Court for the Eastern District of Texas granted a preliminary injunction blocking enforcement of CTA and its reporting requirements.
Texas Top Cop Shop, Inc. v. Garland, a lawsuit originally filed in May of this year, challenged the constitutionality of the Act and requested the injunction. In his order, Judge Mazzant applied the injunction to all reporting companies nationwide.
So, for now, there is no need to submit filings under CTA.
Whether Judge Mazzant’s ruling will be appealed, what will result from an appeal if taken, and whether Congress will act further in this area are all currently uncertain. We will continue to monitor the situation and issue additional alerts as appropriate.
