Corporate Transparency Act Halted

Throughout the year, Hudson Legal Services has been alerting business clients to the new federal reporting requirements under the Corporate Transparency Act.  The Act went into effect January 1, 2024, requiring millions of business owners to file a report with the federal Financial Crimes Enforcement Network (“FinCEN”), a bureau of the United States Department of the Treasury.  This historic law imposed unprecedented reporting requirements for nearly all small businesses in the country, in an effort to combat financial crimes.  

This week, a federal court in Texas issued a preliminary injunction, pausing the government's enforcement of the Act.   

In the opinion, the Court stated the Act is likely unconstitutional, as outside the scope of Congress’s power.  The court paused the January 1, 2025, reporting deadline.  Texas Top Cop Shop, Inc., et al. v. Garland, et al. Case No. 4:24-cv-478 (E.D. Tex. Dec. 3, 2024).  

What does that mean for business owners?

If you have not already filed your BOI report, you can hold off for now.  But stay alert for future updates, as the case will likely be appealed, and it is possible the reporting requirements will be reinstated.  Contact Hudson Legal Services for further guidance.