Federal Court Halts Nationwide Enforcement of Corporate Transparency Act

A federal court in Texas has issued a nationwide preliminary injunction preventing the enforcement of the Corporate Transparency Act (CTA), which mandates U.S. companies to disclose beneficial ownership information to FinCEN. The court found that the plaintiffs, who argued that Congress overstepped its constitutional authority, are likely to succeed in their claims. This injunction halts the CTA's enforcement, including the January 2025 reporting deadline, pending further legal proceedings.