Nationwide Block on Corporate Transparency Law Delays Reporting

A federal district court has issued a nationwide injunction against the enforcement of the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting rule, citing potential unconstitutionality. The court found the CTA likely exceeds Congress's powers under the Commerce and Necessary and Proper Clauses, as it regulates domestic rather than foreign affairs. The injunction, resulting from the case Texas Top Cop Shop, Inc. vs. Garland, halts the CTA's January 2025 reporting deadline, providing relief to small businesses. The government may appeal the decision.