As most businesses were rushing to meet the January 1, 2025, deadline to submit Beneficial Ownership Information (BOI) under the Corporate Transparency Act (CTA), a federal court in Texas issued a major ruling on December 3, 2024. The court temporarily stopped the U.S. government from enforcing the BOI reporting requirements nationwide. The lawsuit, filed by the National Federation of Independent Business (NFIB), argued that the CTA might be unconstitutional. The court agreed, finding that the law likely exceeds Congress’s authority to regulate commerce or pass laws necessary for tax collection.
This nationwide injunction means businesses are no longer required to meet the January 1 deadline while the injunction is in place. The pause on enforcement could be temporary, as the federal government is expected to appeal the ruling. If the court’s decision is overturned, BOI reporting rules and penalties may be reinstated. For now, the reporting requirements are on hold, offering businesses a temporary reprieve as the legal battle unfolds. Business owners should stay updated on developments, as compliance could be required again in the future.
For any questions or assistance in keeping your company compliant, please reach out to us at info@mnklawyers.com.
