Beneficial Ownership Reporting Requirements Blocked by Federal Court

Nationwide injunction granted in lawsuit that challenged the Corporate Transparency Act and beneficial ownership reporting requirements.

The National Federation of Independent Business (NFIB) applauded the December 3 decision in the case Texas Top Cop Shop, Inc., et al. v. Garland, et al. at the U.S. District Court for the Eastern District of Texas granting a preliminary injunction, blocking the U.S. Department of Treasury from enforcing the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting requirements. The CTA would have required many small businesses, such as those organized as pass-through entities such as S-Corporations, to provide detailed information on the