Big news for S corporations and other businesses covered by the Corporate Transparency Act – draft text of the negotiated legislation, which was released earlier today, includes a one-year delay of the Corporate Transparency Act’s (CTA) reporting requirements.

That means many businesses covered by the CTA – specifically those that existed prior to 2024 – will have an extra year to file their Beneficial Ownership Information reports. It’s a commonsense approach that S-Corp and its allies have pushed for over the last several years and, if enacted this week, will give 30 million businesses some much needed certainty heading …

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Notable Developments

1. WSJ Highlights Legislative Effort
2. Carol Roth on the Need for Certainty
3. Is FinCEN Complying with the Injunction?

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Legislative Update

Draft text of a Continuing Resolution – which Congress has to pass before Saturday to avoid a government shutdown – is expected to be released today, and many are watching closely to see if it includes a one-year pause of the CTA.

With the filing requirements currently on hold thanks to a Texas court ruling, why does Main Street still need a delay? Here are Caleb Kruckenberg and Andrew Grossman – who have both helped lead the legal battle against …

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Notable Developments

1. Government digs in
2. Vivek blasts CTA
3. Congress working on delay
4. CNBC highlights CTA “awareness” gap

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Legal Update

Just two days after the U.S. District Court for the Eastern District of Texas issued a nationwide injunction of the CTA, the federal government appealed the decision. The case now heads to the Fifth Circuit Court of Appeals, though no word yet on when we might see a ruling.

As noted earlier, the ongoing legal battle – which will likely bleed into 2025 – makes it even more critical that an official delay be enacted. Without one, we could see an outcome …

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The national injunction on CTA filing imposed by the Eastern District of Texas Court Tuesday provides millions of business owners with a good possibility – but just a possibility – of permanent relief from this poorly thought-out law.

With the year-end filing deadline looming, where do things stand?

1. The DOJ filed an appeal to get the injunction lifted last Thursday, December 5^th. No word on when the 5^th Circuit might rule. Will it come before or after the end of the year?
2. FinCEN meanwhile posted a notice on its BOI landing page that it would comply with the …
   
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