Appeals Court Reinstates Injunction to Prevent Enforcement of BOI Reporting Obligations

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide injunction to prevent enforcement of the BOI reporting rules. The case was Texas Top Cop Shop, Inc., et al. v. Garland, et al. The court enjoined enforcement of the Corporate Transparency Act (CTA), stating that the CTA itself is likely unconstitutional. On December 23, a motions panel of the Fifth Circuit Court of Appeals lifted the injunction. In response, FinCEN announced that businesses that would be required to comply by January 1, 2025 would have until January 13, 2025 to file their reports. On Thursday, December 26, a merits panel of judges reversed that position to reinstate the injunction, citing a need to maintain the status quo while evaluating the constitutionality of the CTA. Thus, the injunction preventing enforcement remains in place. For more information on the new beneficial ownership information reporting rules, visit Tax Facts Online. Read More: Link to Q8978.01. Note: Q is updated.