Attorneys
On December 3, 2024, a Federal District Court in Texas held on a preliminary basis that the Corporate Transparency Act and the related regulations are unconstitutional. The Court issued a preliminary injunction precluding the government from continuing to process filings to FinCen of Beneficial Ownership Information for the moment. It was initially unclear how the government would respond but, on December 5, 2024, an appeal was filed to the 5th Circuit Court of Appeals.
As of December 9, 2024, an Alert was posted on the www.fincen.gov website stating that, “While this litigation is ongoing, FinCEN will comply with the order issued by the U.S. District Court for The Eastern District of Texas for as long as it remains in effect. Therefore, reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership information requests.”
McBrayer attorneys are standing by and available to advise clients regarding these developments. Please contact us if you have any questions.
