The U.S. District Court for the Eastern District of Texas has issued a nationwide preliminary injunction against enforcement of the Corporate Transparency Act (CTA)'s BOI reporting requirements, which we discussed in a post a few weeks ago. The court felt the CTA is overstepping constitutional boundaries and burdens businesses with significant compliance costs without clear safeguards against misuse of the data collected.
To be clear, although the court has limited enforcement, it did not eliminate the statutory obligation to file, therefore businesses are still legally required to comply unless the law itself is repealed. There is no way to know at this point if this new legal decision will be overturned or changed or other legal steps FinCen could take to restore enforceability or what that enforcement may look like. We're hopeful this draws more attention to the matter and there will soon be an official decision to delay the BOI reporting requirements until the courts are able to work it all out.
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Amanda Bernard CMA,CPA,CFE
Director/Manager
Douglassville PA
United States
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