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Corporate Transparency Act (CTA)
CTA Injunction - What happened?
A Texas court recently issued a preliminary injunction temporarily blocking enforcement of the Corporate Transparency Act ("CTA"). While this pause is noteworthy, it’s essential to understand the potential implications.A federal judge in Texas ruled that the CTA likely exceeds constitutional authority, issuing a nationwide injunction against its enforcement. This decision temporarily halts the CTA’s requirements, including the December 31, 2024, filing deadline. However, the ruling is not final. The Department of Justice appealed the District Court ruling to the 5th Circuit on December 5, 2024, and if the appeal is successful, the CTA’s requirements could be reinstated.
We will continue to monitor FinCEN's interpretation of this ruling and litigation developments at the 5th Circuit as they occur. For the avoidance of doubt, currently there is no legal obligation to file a CTA report.Your CTA obligations
Please note that we are unable to advise you of the impact of the CTA without being specifically instructed and engaged to undertake an assessment on your behalf. Please speak to your usual Withers' contact, or click the button here and a member of the team will be happy to help. For further regulatory information, click here.
VIDEO
Corporate Transparency Act: What business owners, directors and trustees need to know about their privacy
The US Corporate Transparency Act (CTA) is an addition to the Bank Secrecy Act that takes effect in January of 2024, and the goal of the CTA is to disclose beneficial ownership and control of companies. It requires a significant number of US businesses formed with secretaries of state to file reports with the US Department of Treasury's Financial Crimes Enforcement Network (FinCEN) from January 2024.
Resources: How will the CTA impact you?
Meet our CTA team
William J. Kambas
Partner | New York
Jaime McLemore
Partner | London
Ivan A. Sacks
Partner | New York
Elizabeth A. Bawden
Partner | Los Angeles
Get in touch
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