On December 3, 2024, a Texas-based federal court issued an order prohibiting the federal government from enforcing the Corporate Transparency Act (CTA) anywhere in the country.
Starting in 2025, this much-debated law imposed heavy reporting requirements on a wide range of companies. A federal court in Texas issued a preliminary injunction blocking it. Judge Amos L. Mazzant, III, US District Court for the Eastern District of Texas, wrote: “For good reason, Plaintiffs fear this flanking, quasi-Orwellian statute and its implications on our dual system of government.”
In the court’s words: Pending before the Court is Plaintiffs’ Motion for Preliminary Injunction (Dkt. #6). Through it, Plaintiffs seek to enjoin the Government from enforcing the Corporate Transparency Act and its Implementing Regulations. Having considered the Motion, the arguments of counsel, and the applicable law, the Court concludes that the Motion should be GRANTED.
The National Law Review said a government appeal is likely, and the CTA may come back. Business owners should stay in touch with their attorneys, in case the CTA comes back in the future.