On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction temporarily halting the enforcement of the Corporate Transparency Act (CTA) and its Reporting Rule.
This decision arose from the case Texas Top Cop Shop, Inc. v. Garland (E.D. Texas, No. 4:24-cv-00478). While the Court did not rule on the constitutionality of the CTA or determine that it conflicts with existing laws, it issued the injunction to pause enforcement.
The injunction means businesses subject to the CTA can delay compliance with the January 1, 2025, deadline for reporting Beneficial Owner Information until further orders from the Court. This temporary relief will remain in place while the case continues to be litigated.
