Injunction Regarding CTA Small Businesses Ownership Reports Lifted - Articles

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Posted by: Jarod Word on Feb 24, 2025

The U.S. District Court for the Eastern District of Texas has lifted a temporary injunction on the enforcement of part of the Corporate Transparency Act (CTA) which mandates small businesses report ownership, The Business Journals report. The rule is an effort by U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) that requires businesses with fewer than 20 employees to provide names, dates of birth, addresses and other identifying information about its owners. Initially set to go into effect Jan. 1, a lawsuit filed by several businesses challenged the rule on constitutional grounds. FinCEN is giving small businesses 30 days to comply with the reporting requirements.