On December 3, 2024, the United States District Court for the Eastern District of Texas issued a preliminary injunction prohibiting the government from enforcing the Corporate Transparency Act (“CTA”) and releasing companies from the obligation to file information on their beneficial owners with Department of the Treasury’s FinCEN network. This order goes further than the one issued earlier this year by the federal court in Alabama as it applies nationwide to all companies required to comply with the CTA.
It is expected that the government will appeal this order. Any appeal will take many months if not a year or two to work its way through the court system.
What This Means For You
If you have not registered yet with FinCEN, you are no longer obligated to do so for the immediate future. The conservative approach, however, is to register.
The full opinion can be found here. For more information on the Community Association Institute’s pending lawsuit, advocacy efforts, and the act’s impact on community associations, visit www.caionline.org/CTA.