Hey, Warriors and Bosses!
The January 1, 2025, compliance deadline for the Corporate Transparency Act (CTA) is on hold.
In a significant development, a Texas federal court has issued a preliminary injunction blocking enforcement of the CTA. This law, enacted to combat financial crime, requires certain businesses to disclose information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).
The court’s decision is a relief to many businesses grappling with the implications of the CTA. The injunction effectively suspends the original compliance deadline of January 1, 2025, providing businesses with a reprieve as the legal challenges to the CTA continue.
FinCEN has acknowledged the court’s decision and posted an alert on its website. The alert confirms that FinCEN is temporarily prohibited from enforcing the CTA’s reporting requirements.
What does this mean for businesses?
While the injunction provides temporary relief, it’s important to remember that the legal battle over the CTA is far from over. Businesses should continue to monitor the situation closely and prepare for the possibility that the CTA will eventually be enforced.
Key Takeaways:
- The CTA’s compliance deadline is currently suspended due to a preliminary injunction.
- FinCEN is temporarily prohibited from enforcing the CTA’s reporting requirements.
- Businesses should continue to monitor the situation and prepare for potential future compliance requirements.
Stay tuned for further updates on this developing story.
Lisa Smith, SPHR, SCP
Note: This blog post is for informational purposes only and should not be construed as legal advice. Always consult with a legal professional for advice specific to your situation.
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Lisa Smith, SPHR, SHRM – SCP
Certified EEO Investigator (EEOC)
Lead Support and Content Chief – HelpDeskforHR.com
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