A Texas Federal Court has ruled the Corporate Transparency Act (CTA) unconstitutional, citing overreach under the Commerce Clause. A nationwide injunction temporarily halts enforcement, but the decision is likely to be appealed. Businesses should stay informed as legal challenges continue...
On December 3, 2024, a Texas Federal District Court ruled that the Corporate Transparency Act (CTA) and its associated regulations are unconstitutional. https://lnkd.in/eiz98p8W
Big news: A Texas court just declared the Corporate Transparency Act (CTA) unconstitutional, putting a pause on its enforcement nationwide. For now, businesses don’t have to file ownership reports, but this could change if the decision gets overturned on appeal...
On December 3, 2024, a Texas Federal District Court ruled that the Corporate Transparency Act (CTA) and its associated regulations are unconstitutional. https://lnkd.in/eiz98p8W
On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a Memorandum Opinion and Order granting a preliminary injunction that temporarily halts the enforcement of the Corporate Transparency Act (CTA). To learn what this decision means for you, read our alert authored by Peter Murphy ➡️ https://lnkd.in/e4W8iNy7 #CTA #CorporateTransparencyAct
On December 23, 2024, the United States Court of Appeals for the Fifth Circuit stayed the nationwide preliminary injunction against enforcement of the federal Corporate Transparency Act (CTA) previously issued by the U.S. District Court for the Eastern District of Texas in a case challenging the constitutionality of the CTA.1 As a result of the stay, the CTA has gone back into effect nationwide after having been suspended since December 3. However, also on December 23, FinCEN announced that it was extending several beneficial ownership reporting deadlines, including extending the initial reporting deadline for companies formed prior to 2024 from January 1, 2025 to Monday, January 13, 2025. Read the full Legal Alert from Louis Barbieri, David M. Eaton, and Kate Kanabay here: https://lnkd.in/eDXRPamN
On December 3, 2024, a federal district court in the Eastern District of Texas issued a nationwide injunction on the Corporate Transparency Act. The court determined, among other reasons, that the law likely exceeds Congress’ authority and is therefore unconstitutional. To learn more on the ruling, how FinCEN has responded, and what actions to take, read the full alert here: tinyurl.com/ClientAlertCTA
Latest news
On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit lifted the Texas District Court’s nationwide preliminary injunction that had temporarily suspended the enforcement of the Corporate Transparency Act (CTA). This means that reporting companies formed prior to January 1, 2024 that are not exempt from the reporting requirements under the CTA must file their Beneficial Owner Information reports by January 13, 2025. https://lnkd.in/eUQ8b6xx
▪️Founding Partner at Chilivis Grubman ▪️Criminal Defense ▪️False Claims Act Defense ▪️Healthcare Fraud Defense ▪️High-Stakes Civil Litigation
BREAKING: A judge in the M.D.FL. has dismissed a False Claims Act qui tam case, finding that the qui tam (whistleblower) provisions of the FCA are unconstitutional. The district court judge (who clerked for Justice Thomas) followed Justice Thomas' recent dissenting opinion in which he questioned the constitutionality of the qui tam provisions. Considering that around 75%+ of all FCA activity is the result of a qui tam whistleblower suit, and that whistleblower suits bring in BILLIONS of dollars to the federal government every year, it will be VERY interesting to see what happens when the 11th Circuit inevitably takes this up on appeal. More analysis to come... #falseclaimsact #fca #quitam
IMPORTANT UPDATE: This month, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction blocking enforcement of the Corporate Transparency Act (CTA). The law, which took effect on January 1, 2024, requires businesses to report information about their beneficial owners to the Financial Crimes Enforcement Network, US Treasury (FinCEN). The court found that the plaintiffs, who argued that Congress exceeded its constitutional authority, will likely succeed. As a result, businesses are not required to meet the previously announced reporting deadline of January 1, 2025. This temporary injunction may be lifted if the ruling is overturned on appeal. Businesses should remain informed and monitor updates as the legal process unfolds. Read more: https://lnkd.in/ePSaUHXm
The United States District Court for the Eastern District of Texas has issued a preliminary injunction against enforcing the Corporate Transparency Act in response to a lawsuit that contended the CTA infringed upon constitutional principles by imposing federal oversight on state-registered companies and requiring disclosure of detailed personal information about their owners. The Court stayed the deadline to file a report under the Administrative Procedure Act (APA) § 705. We’re monitoring FinCEN’s next steps to advise clients on what to do regarding filing before the upcoming December 31 deadline. If you have any questions, please contact Emma Rodgers at erodgers@wsh-law.com. Read more: https://lnkd.in/gu5zZZUx #WSHCBLaw #CTA #CorporateTransparencyAct
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CTA NOTICE: The federal government prevailed in their appeal to the 5th Circuit Court of Appeals and were successful in getting a stay on the injunction against enforcement of the Corporate Transparency Act. What this means to you as a business owner: The compliance requirements for the Corporate Transparency Act (CTA) is back on and small businesses are once again required to report beneficial owners to the FinCEN (a part of the IRS) by December 31, 2024.
As predicted by our firm, on December 3, 2024, a Federal District Court in the Eastern District of Texas granted a nation-wide injunction against the enforcement of the CTA, including the enforcement of the Reporting Rule 31 C.F.R. 1010.380 (BOIR) on the basis that it is a constitutional overreach on behalf of Congress. As such, without further order of the Court, Reporting Companies need not comply with the CTA’s current beneficial ownership-related information report deadline of January 1, 2025. Click here for additional information and options. https://lnkd.in/g6W8CTCi #FamilyBusiness #CTA #TaxReporting #USDepartmentofTreasury
