BREAKING- A FEDERAL JUDGE HAS ISSUED A PRELIMINARY INJUNCTION REGARDING THE CURRENT CTA FILING DEADLINE-BUT IT'S NOT DEAD YET

On Tuesday December 3, 2024, a Texas federal judge issued a preliminary nationwide injunction that halts enforcement of the Corporate Transparency Act (CTA) and its impending January 1, 2025 filing deadline on grounds that it is “likely” unconstitutional.

Earlier this year, another federal court in Alabama found that the CTA was unconstitutional, but the ruling applied to a very narrow group that had brought the suit.

Other courts have upheld the CTA as constitutional.

As of December 6, 2024, the government has already appealed the injunction to the Fifth Circuit Court of Appeals. If the injunction is lifted, the original filing deadlines could still stand. FinCEN has indicated they will respect the injunction while it is in place, but it disagrees that the CTA is unconstituional and have made no indication to date that they will extend the filing deadlines if the stay is removed.

12/13/24 Update: The government filed an emergency motion for stay pending appeal to lift or limit the injunction and requested this be done by December 27th and stated as follows:

"The government respectfully requests a ruling on this motion as soon as possible, but in no event later than December 27, 2024, to ensure that regulated entities can be made aware of their obligation to comply before January 1, 2025.  The government proposes that plaintiffs’ response be due December 19, 2024, and the government’s reply be due December 23, 2024.  Plaintiffs oppose this motion, but take no position on the government’s proposed briefing schedule."

That would give entities that have not filed yet 4 days to comply!