DLC CPAs

BOI Reporting Delayed

While H.R. 7024 failed its journey, another piece of legislation - The Corporate Transparency Act - faces an uncertain future as the courts will likely decide its fate in 2025, unless Congress beats them to it. At the heart of the battle is the regulations requiring businesses to report benefical ownership information in an effort to help the government monitor and combat fraud and other criminal activity.

The United States District Court for the Eastern District of Texas granted on December 3, 2024, a motion for preliminary injunction requested in a lawsuit filed by Texas Top Cop Shop Inc., et al, against the federal government to halt the implementation of BOl regulations.

On December 23, 2024, the Fifth Circuit Court of Appeals issued an unpublished order granting a motion for a temporary stay of the District Counts order and injunction pending appeal. The appeals court stated in the Dec. 23 order that "the government has made a strong showing that it is likely to succeed on the merits in defending [the Corporate Transparency Act's] constitutionality," and the government "has made a strong showing against the Businesses' facial challenge to the CTA."

Another great learning session with CFMA.