*This is not legal advice. This is general information to educate about the upcoming CTA requirements.
The beneficial ownership information (BOI) reporting requirement is on hold after a federal Texas judge issued a preliminary injunction applicable to all reporting companies nationwide. The suit was brought by the National Federation of Independent Business (NFIB) and five other businesses to challenge the constitutionality of the new reporting requirement.
The parties argued that First and Fourth Amendment Rights were violated and that Congress exceeded its authority when enacting the Corporate Transparency Act. Until there is a reversal, the requested reporting cannot be enforced. This issue is currently on appeal in the 11th Circuit and could face an expedited appeal to the 5th Circuit.
Additional Sources
Federal Court Blocks Enforcement of Beneficial Ownership Reporting Rule
CTA Nationwide; Reporting Companies “Need Not Comply” with January 1 Deadline
*This is not legal advice. This is general information to educate about the upcoming CTA requirements.