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🚨 Important Update: Corporate Transparency Act (CTA) Compliance Deadline 🚨 The Corporate Transparency Act (CTA) compliance deadline has been put on hold following a nationwide preliminary injunction. On December 3, 2024, U.S. District Judge Amos Mazzant ruled that the CTA and Financial Crimes Enforcement Network, US Treasury (FinCEN) Beneficial Ownership Information (BOI) Reporting Rule may be unconstitutional, staying the January 1, 2025, compliance deadline. What does this mean for businesses? While the government may appeal, the upcoming leadership change at the Department of Justice leaves the future of the reporting requirements for the CTA uncertain. What action should you take? We recommend continuing preparations for BOI filings but not filing them until further guidance is provided by the courts and regulators. Please note some state-level transparency laws may still apply, so those who have filed their BOI reports previously should be able to rely on those filings in order to maintain a good standing status with the FinCEN as well as assisting you with future reporting requirements. Goosmann Law Firm will continue monitoring updates and provide guidance as new developments unfold. Stay informed and contact us with any questions about compliance or what this means for your business! https://lnkd.in/gRDtgZvF #CorporateTransparencyAct #Compliance #LegalUpdates #GoosmannLaw

❗HUGE NEWS FOR BUSINESSES❗ The Corporate Transparency Act’s reporting requirements are on hold nationwide, following a Texas court ruling questioning their constitutionality. Businesses have a reprieve, but the legal fight isn’t over. In our latest DE Insight, Michael J. Raposa, Esq. shares what’s next and why staying prepared is crucial. The Corporate Transparency Act’s reporting requirements are on hold nationwide, following a Texas court ruling questioning their constitutionality. Businesses have a reprieve, but the legal fight isn’t over. In our latest DE Insight, Michael Raposa shares what’s next and why staying prepared is crucial. https://lnkd.in/gKDFqSRA

The #CorporateTransparencyAct (“CTA”), enacted by Congress in 2021 as an initiative to prevent illicit finance, went into effect on January 1, 2024. The CTA establishes disclosure requirements for “reporting companies” in the United States. Because failure to meet these disclosure requirements could result in civil or criminal penalty, we encourage any business entity to determine whether it is subject to the CTA and, if so, to take steps necessary steps to comply with the CTA’s requirements. The first reporting deadline is five months away. If you have any questions, please reach out to Yosef Shwedel. #CorporateLaw #InternationalLaw #NewYorkLawyers #FloridaLawyers #LawyersYouLoveToLove https://lnkd.in/eENaf94y

A federal court in Alabama has ruled that the Corporate Transparency Act of 2020 (CTA) is unconstitutional. This corporate disclosure law includes the Beneficial Ownership Information (BOI) reporting to FinCEN, which requires many businesses to report information about their owners. At this time, the ruling only applies to the plaintiffs in this case. However, the decision is expected to be appealed and could be overturned. The CTA and related BOI reporting remains in effect for everyone else who meets the requirements. Please see the article below and our past posts for more information on BOI reporting requirements. If you are unsure whether this applies to your business please reach out.

A Federal District Court held that the Corporate Transparency Act is unconstitutional, stating it “exceeds the Constitution’s limits on Congress’ power." The ban on the CTA's enforcement is limited to the NSBA and its 60,000+ members... Given the narrow nature of this summary judgment, unless the Treasury Department suspends enforcement of CTA for all 30+ million businesses that are obligated to file, CTA BOI reports will need to be filed by all of those tens of millions of businesses except for the less than 65,000 NSBA members to which the decision applies... Many believe that all reporting companies facing CTA deadlines should seriously consider filing, even if the Federal District Court's ruling covers them. Businesses that fail to file in time to meet their CTA deadlines are betting on the NSBA prevailing in the courts. Meanwhile, if the UST prevails, these businesses will potentially face significant civil fines, interest, and penalties, as well as possible criminal penalties, including jail time... https://lnkd.in/eJV-_eHh

George May, Vice President of Small Business at Wolters Kluwer, emphasizes the importance of adhering to legal obligations, highlighting that the mandate is a result of bipartisan legislation passed by Congress. He underscores that Wolters Kluwer consistently advises against ignoring federal deadlines in anticipation of court decisions potentially negating those responsibilities. "It's not prudent to assume you might be exempted and therefore neglect your duties," he remarked. Discover more: https://gag.gl/Vcxnox? #compliance #cta #legal #beneficialownership

🚨 Important Update on the Corporate Transparency Act (CTA) 🚨 On December 3, 2024, a federal district court in Texas issued a nationwide preliminary injunction, temporarily halting the enforcement of the CTA and its Beneficial Ownership Information (BOI) reporting requirements. This means the January 1, 2025, reporting deadline is currently suspended. The court's decision highlights concerns about the CTA's constitutionality, describing it as "quasi-Orwellian" and beyond the scope of Congress's authority under the Commerce Clause and Necessary and Proper Clause. The U.S. Department of Justice has already filed an appeal, so stay tuned for further developments. This injunction provides temporary relief from the reporting requirements for businesses, but it's crucial to stay informed as the legal situation evolves. It further establishes FINCEN's overreach in its authoritarian rules. #CorporateTransparency #LegalUpdate #Compliance #BusinessLaw https://lnkd.in/ghD5cfsk

A U.S. federal court has temporarily paused the CTA’s January 1, 2025, reporting requirements, citing constitutional concerns. While businesses have relief for now, the government is expected to appeal.   Stay prepared and consult your advisors to navigate potential changes. Learn more with Namir G Hallak, CPA, CA, CPA (Kansas), CGMA latest blog: https://ow.ly/cSTW50Um6J1 #CorporateTransparencyAct

👉UPDATE: Preliminary Injunction Preventing Enforcement of the Corporate Transparency Act Compliance Requirements. On December 3, a federal court granted a nationwide preliminary injunction preventing the enforcement of the CTA and its implementing regulations pending further order of the Court. In Texas Top Cop Shop, Inc. v. Garland, the U.S. District Court for the Eastern District of Texas Court determined that the CTA likely exceeds Congress's powers under the Commerce Clause and the Necessary and Proper Clause of the U.S. Constitution. The Court concluded: “Therefore, the [Corporate Transparency Act] is hereby enjoined. Enforcement of the Reporting Rule [] is also hereby enjoined, and the compliance deadline is stayed []. 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.” The Court further stated that because the CTA rules apply to approximately 32.6 million existing reporting companies, “[g]iven the extent of the violation, the injunction should apply nationwide.” Texas Top Cop Shop, Inc. v. Garland, No. 4:24-cv-478 (E.D. Tex. Dec. 3, 2024). FinCEN already appealed the District Court’s decision to grant the preliminary injunction. We will continue to monitor this case, but in the meantime, there are no requirements to comply with the CTA and its Reporting Rule. If you have questions, please don’t hesitate to contact your attorney or an attorney in Bailey Cavalieri’s Corporate Group.

Are you a business owner? You need to know about the Corporate Transparency Act and how it may affect your business. Here are the top 3 points to know: 1. Your business likely has to report beneficial ownership information by January 1, 2025 2. There are significant fines and penalties for failure to comply 3. You will need to file here: https://lnkd.in/das2C2Zc Learn more here: https://lnkd.in/eFCsVhTM... Contact us if you need assistance navigating the legal implications of the CTA for your business. #BusinessLaw #EmploymentLaw #NKYattorneys #CincinnatiLawyers