Advocacy News – December 5, 2024
What’s new: In a somewhat surprising turn of events and with only a few weeks before the reporting deadline of Dec. 31st, a federal judge in Texas issued a nationwide injunction on the Corporate Transparency Act (CTA). This new development means enforcement of the CTA has been stalled and businesses “need not comply” … for now.
What’s the CTA and why it matters: Millions of small businesses were slated to disclose certain sensitive information to the Financial Crimes Enforcement Network (FinCEN). The CTA was implemented under the guise of helping the federal government crackdown on cases of fraud or terrorism by collecting ownership information from businesses.
What’s next: The Court’s decision will likely not be the final word as appeals are expected and litigation continues. The Michigan Chamber will continue to watch this closely and keep you updated.
Go deeper: For more information on the CTA and the injunction, check out this update from MI Chamber member Varnum Law or contact Leah Robinson.