A Corporate Transparency Act injunction has been granted, putting a halt to its enforcement. The ruling also applies to homeowners associations.
Corporate Transparency Act Injunction Explained
On December 3, the U.S. District Court for the Eastern District of Texas issued a preliminary nationwide injunction against the enforcement of the Corporate Transparency Act (CTA). In the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., Judge Amos L. Mazzant III granted the plaintiffs’ request to block the U.S. Department of Treasury from implementing the CTA’s beneficial ownership information (BOI) reporting requirements.
In his decision, Judge Mazzant stated that both the CTA and its implementing regulations could not be enforced, noting, “Reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.” This ruling halts enforcement and compliance with the Act’s reporting obligations nationwide.
The injunction has significant implications, as it suspends the Act’s requirements for all reporting entities across the United States. Legal experts from the Community Associations Institute (CAI) interpret this ruling as applicable to all community associations incorporated within the U.S., providing temporary relief from the BOI reporting mandate.
