Our Mission

Learn who we are and how we serve our community

Leadership

Meet our leaders, trustees and team

Foundation

Developing the next generation of talent

C+CT

Covering the latest news and trends in the marketplaces industry

Industry Insights

Check out wide-ranging resources that educate and inspire

Government Relations & Public Policy

Learn about the governmental initiatives we support

Events

Connect with other professionals at a local, regional or national event

Virtual Series

Find webinars from industry experts on the latest topics and trends

Professional Development

Grow your skills online, in a class or at an event with expert guidance

Find Members

Access our Member Directory and connect with colleagues

ICSC Networking Platform

Get recommended matches for new business partners

Student Resources

Find tools to support your education and professional development

Become a Member

Learn about how to join ICSC and the benefits of membership

Renew Membership

Stay connected with ICSC and continue to receive membership benefits

Government Relations & Public Policy

Federal Court Blocks Corporate Transparency Act

December 4, 2024

This week the District Court for the Eastern District of Texas granted a national injunction enjoining the government from enforcing the Corporate Transparency Act (CTA) and expressly stating that companies “need not comply with the CTA’s January 1, 2025, BOI reporting deadline pending further order of the Court.” Click here to view the opinion.

The opinion states “[t]he Court has determined that the CTA and Reporting Rule are likely unconstitutional for purposes of a preliminary injunction. It has not made an affirmative finding that the CTA and Reporting Rule are contrary to law or that they amount to a violation of the Constitution.” 

The CTA’s goal is to prevent money laundering and tax fraud by requiring certain businesses to disclose ownership information in the form of beneficial ownership reports. The compliance reports go to the Financial Crimes Enforcement Network or FinCEN, part of the U.S. Treasury. The CTA went into effect earlier this year and requires an estimated 32 million small business owners to file certain personally identifiable information with FinCEN. The law applies to privately held and many non-profit entities, including corporations, limited liability companies, limited partnerships, business trusts and other similar entities that are created by the filing of a document with a secretary of state or similar governmental office.

The government will likely appeal the opinion and request the order to be stayed pending the outcome of the appeal. This is a preliminary injunction and reporting companies should stay informed regarding additional updates and proceedings in this and other cases which could change this order.

From a legislative perspective, this decision might provide the nudge the relevant parties in Congress need to greenlight a delay of the CTA in an end-of-year package. ICSC GPP is working hard to gather intel on that front, and again, will report new developments as they occur.

For more information contact Moutray McLaren at mmclaren@icsc.com.