On December 3rd, 2024 a Federal District Court in Texas has issued a nationwide preliminary injunction against the Corporate Transparency Act, finding that the plaintiffs have met the burden of showing the law is a likely violation of both the 1st and 4th amendments of the U.S. Constitution. This action comes just weeks ahead of a looming deadline of December 31st, 2024 when millions of small businesses would have had to make their first filing.
Updated December 26, 2024
UPDATE: Corporate Transparency Act Reinstated by 5th Circuit Court of Appeals
Updated December 27, 2024
UPDATE: Corporate Transparency Act Suspended AGAIN
This means businesses do not have to comply with the Corporate Transparency Act--for now. it is likely the government will appeal the preliminary injunction, meaning this remains a fluid situation. This preliminary injunction blocks the law and its enforcement while the case is being litigated.
U.S. District Judge Amos Mazzant said in his ruling that neither Congress' power to regulate commerce nor to conduct foreign affairs justified the act that applies to an estimated 32 million businesses.
Prior to the ruling, small businesses that met certain criteria would have had to file reports with the Department of the Treasury by January 1, 2025, or risk substantial fines and criminal penalties.
Many other groups around the country have also filed lawsuits challenging the Corporate Transparency Act, including the Small Business Association of Michigan.
