A Federal District Court in Texas found the Corporate Transparency Act unconstitutional and issued an injunction effectively eliminating the January 1st reporting requirement for companies to register ownership information with FinCEN. The injunction was issued in Texas Top Cop Shop, Inc. vs. Garland and applies nationally. FinCEN has also recently confirmed that reports are voluntary and that it will comply with the order issued by the U.S. District Court as long as it remains in effect.
This injunction may go through an appeals process and could subsequently be overturned. HKA will continue to monitor any cases surrounding the issue and we recommend that our clients do the same.
If you engaged HKA to file the report, but the filing has not been completed, we have paused all projects until we have heard back from you regarding whether you’d like to move forward or pause indefinitely. We will be reaching out to you individually this week to confirm your reporting status and how you’d like to proceed.
It falls outside of HKA’s area of expertise to review court rulings and their impacts, and as such we recommend that you seek further confirmation of your filing requirement through legal counsel.
