On December 3, 2024, the U.S. District Court for the Eastern
District of Texas issued a nationwide order prohibiting the
Treasury Department/Financial Crimes Enforcement Network
(FinCEN) from enforcing the Corporate Transparency
Act (CTA).
This is, however, only a preliminary injunction and not a final
decision – and FinCEN has indicated it would appeal this
decision. It is possible that this decision is overturned
(temporarily or permanently) and a final decision may not come
until after the January 1, 2025 CTA compliance deadline for
entities formed prior to January 1, 2024.
In light of the previously applicable January 1, 2025 deadline,
combined with the holidays, we recommend that companies finalize
their analysis to determine whether or not they meet an exemption
to file, identify their beneficial owners, gather all necessary
identification documents and stand ready to file – in the
event that this decision is overturned before January 1, 2025.
