BREAKING NEWS: Beneficial Ownership Information Reporting Suspended

Article Highlights:

  • Injunction Halts Enforcement of the Corporate Transparency Act (CTA)

  • What Happened?

  • What Does This Mean to You?

  • What’s Next?

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a game-changing nationwide injunction that temporarily halts enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements. Here’s what this means for you and the compliance landscape in the weeks ahead.

What Happened? - In the case Texas Top Cop Shop, Inc. v. Garland, the court found the CTA likely unconstitutional. Its key reasoning? Congress overstepped its legislative powers by enacting a law that mandates broad disclosures from companies across the United States. The court criticized the CTA as a dangerous overreach, likening its requirements to "quasi-Orwellian" federal oversight.

For context, the CTA required millions of U.S. companies to report sensitive data about the companies’ owners to the Financial Crimes Enforcement Network (FinCEN) by January 1, 2025, with non-compliance subject to civil and criminal penalties. The purpose of the reporting requirement is to help the government identify individuals engaged in money laundering and other illegal activities.

The court ruled that the BOI filing obligations are not justified under the Constitution’s Commerce Clause or Necessary and Proper Clause, staying all enforcement actions nationwide.

What Does This Mean to You?

For now, businesses that would otherwise have had an obligation to file a BOI report are not required to meet the January 1, 2025, reporting deadline. This includes:

  • Existing entities previously obligated to file BOI reports.

  • Newly formed companies created or registered in 2024.

Additionally, penalties for non-compliance under the CTA are on hold. This reprieve may relieve immediate compliance burdens, especially for small and medium-sized businesses already grappling with increased regulatory complexities.

What’s Next?

The federal government is widely expected to appeal this decision, with the U.S. Department of Justice potentially taking the case to the Fifth Circuit Court of Appeals or even the Supreme Court. While the injunction is in place, compliance requirements remain suspended. However, if the injunction is overturned, enforcement could resume abruptly.

Here’s what you can do to be prepared:

  1. Stay Informed: Whether the DOJ files an appeal or if further clarification is issued by FinCEN.

  2. Recordkeeping: While filing is paused, it’s wise for businesses to maintain accurate ownership records in case compliance resumes, particularly those preparing for mergers, acquisitions, or new entity formations, which might intersect with BOI reporting.

If you have questions about this development or would like to complete the reporting requirement regardless of the injunction, please contact this office.

Share this article...

Sign up for our newsletter.

Each month, we will send you a roundup of our latest blog content covering the tax and bookkeeping tips & insights you need to know.

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the and .

We care about the protection of your data.

Junglebooks Affiliate Program

Why Partner with Us?

With years of experience and a team of certified professionals, we deliver exceptional results to our clients.

Industry-Leading Expertise

Our firm is a leader in the accounting industry, providing comprehensive services that include tax preparation, bookkeeping, financial planning, and business consulting. With years of experience and a team of certified professionals, we deliver exceptional results to our clients.

Attractive Commissions

We value our affiliates and offer competitive commission rates for every client you refer who signs up for our services. The more clients you refer, the more you earn.

Comprehensive Support

We provide our affiliates with all the resources needed to succeed, including marketing materials, dedicated support, and regular updates on our services. You’ll have everything you need to effectively promote our firm and earn commissions.

Trusted Reputation

Our firm has built a solid reputation for excellence and trustworthiness. When you refer clients to us, you can be confident that they will receive the highest level of service and satisfaction.

Frequently Asked Questions

This firm prepares tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Our firm’s seasoned professionals are experts in all areas of taxation including:


  • Individual Returns
  • Payroll Tax Issues
  • Business Returns
  • Sales Tax Returns
  • Rental Income Returns
  • Business Consultation
  • Expatriate Returns
  • Fiduciary & Estate Returns
  • Corporation Returns
  • Bookkeeping
  • Partnership Returns
  • LLC Returns

Our firm offers a full range of planning services including, but not limited to:


  • Individual Tax Planning
  • Business Tax Planning
  • Business Organization
  • Rental Properties
  • Foreclosures and Repossessions
  • Retirement
  • Investments
  • Sales and Exchanges
  • Pension Plans
  • Education Planning
  • Finance & Refinance Planning
  • Home Purchase and Sale Planning
We are here for you twelve months a year, not just during tax season. Whether you have a simple tax question, need advice on the tax implications of a business decision, or want clarification on a government notice, feel free to give us a call.
We maintain a policy of the strictest confidence concerning our clients’ affairs. You can rest assured that no one will learn about your business or tax status – even relatives, associates or friends who might have referred you to us.