WASHINGTON, DC (December 23, 2024) – The National Federation of Independent Business (NFIB) is extremely disappointed in today’s decision by the U.S. Court of Appeals for the Fifth Circuit in NFIB’s lawsuit challenging the Texas Corporate Transparency Act (CTA). I’m doing it. Cop Shop Co., Ltd. et al. v. Garland et al. Earlier this month, the U.S. District Court for the Eastern District of Texas granted a nationwide preliminary injunction in this case, blocking the U.S. Treasury from enforcing the CTA. Today’s decision to vacate this injunction prevents the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) from enforcing the CTA and its Beneficiary Information (BOI) reporting requirements while our case proceeds. It becomes possible.
“This decision leaves small business owners scrambling to meet the reporting requirements of this terrible law. Enforcing a January 1 compliance deadline will wreak havoc on our nation’s small businesses. ” said Beth Milito, executive director of the NFIB Small Business Legal Center. “The district court granted the preliminary injunction, correctly recognizing that BOI reporting requirements would have devastating consequences for small business owners. Make no mistake, the NFIB has already swiftly appealed this terrible decision and We are working to give our Main Streets a reprieve from this harmful mission.”
More than 32 million small businesses nationwide will once again be subject to this burdensome law, including the approximately 300,000 NFIB member companies participating in this lawsuit. NFIB supports repealing the Big Brother Overreach Act, a bill that would repeal the CTA and permanently ease beneficial ownership requirements for small businesses.
The NFIB Small Business Legal Center protects the rights of small business owners in courts across the country. NFIB currently handles more than 40 cases in federal and state courts across the country, and in the U.S. Supreme Court.
