In a memorandum opinion issued on December 3, 2024, Judge Mazzant out of the Eastern District of Texas issued a preliminary injunction against the Corporate Transparency Act, finding that the Act is likely beyond the scope of Congressional authority. Reporting companies do not have to comply with the CTA’s January 1, 2025 reporting deadline, pending further order from the court. The case is Texas Top Cop Shop Inc., et al., v. Garland, 4:24-cv-00478-ALM.
Unlike the earlier case out of Alabama, the Court’s order in Texas Top Cop Shop applies nationwide. If the preliminary injunction stands (it will certainly be appealed), corporations across the country – including our HOA clients – do not have to file their beneficial owner reports. We will update as soon as we hear news on this front!