Court puts Corporate Transparency Act on hold

By Peggy Kirk Hall, director of agricultural law, Ohio State University Agricultural and Resource Law Program

If you are one of those farm businesses putting off the requirement to file “beneficial ownership information” (BOI) to the federal government under the new Corporate Transparency Act (CTA), you received an early Christmas present from a federal court in Texas. The U.S. District Court for the Eastern District of Texas has issued a nationwide preliminary injunction against the CTA, concluding that the law “appears likely unconstitutional.” The court halted enforcement of the CTA and its regulations (the Reporting Rule) and stayed the Jan. 1, 2025 deadline for BOI reporting. 

What is the CTA?

The CTA is a new federal law that requires certain businesses to report the identities of those with “beneficial ownership interests” in the business to the federal Department of Treasury’s Financial Crimes Enforcement Network. The CTA’s first reporting deadline was set to be Jan.… Continue reading