Based on changes to the Corporate Transparency Act (“CTA”), many business entities were faced with filing a report about their “beneficial owners” with the federal government by January 1, 2025 (“BOI Reports”).

On December 3, 2024, a Texas federal court ruled that the new CTA reporting requirements are unconstitutional and enjoined the deadline to file BOI Reports by January 1, 2025. Specifically, Judge Amos Mazzant stated in his order:

“Enforcement of the Reporting Rule, 31C.F.R. 1010.380 is also hereby enjoined, and the compliance deadline is stayed under § 705 of the APA. Neither may be enforced, and reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.” Texas Top Cop Shop, Inc., et al v. Garland et al, Docket No. 4:24-cv-00478 (E.D. Tex. May 28, 2024).

Hellmuth & Johnson will continue to monitor this situation, but as of December 3, 2024 the new CTA reporting requirements have been ruled unenforceable and unless and until a higher court or congress addresses Judge Mazzant’s decision, going forward no BOI Reports must be filed.

Please contact your Hellmuth & Johnson attorney if you have questions.