Nationwide Injunction of the CTA issued

By Richard S. Ekimoto, Esq

Bloomberg Law has reported a few hours ago that a federal District Court judge in Texas issued a nationwide injunction on the Corporate Transparency Act (“CTA”). The injunction means that the CTA is blocked from being enforced. Judge Amos Mazzant III issued the injunction stating:

The CTA is likely unconstitutional as outside of Congress’s power. Because the Reporting Rule implements the CTA, it is likely unconstitutional for the same reasons.

The Judge’s order blocked the enforcement of the reporting requirement and “reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.” As a result, community associations that have not filed their BOI Report should not do so at this time. There is no word currently whether FinCen will appeal the decision.