BOI Enforcement Injunction

The United States District Court for the Eastern District of Texas issued a nationwide injunction Tuesday to enjoin the United States Government from enforcing the Corporate Transparency Act and its Implementing Regulations.

In a 79-page opinion, U.S. District Judge Amos Mazzant in Eastern Texas said neither Congress' power to regulate commerce nor to conduct foreign affairs justified the act.

Mazzant ruled the Texas plaintiffs are likely to successfully argue the act violates the 10th Amendment, which limits Congress' powers to those delegated to it in the Constitution.

Prior to Tuesday’s preliminary injunction issued by the Texas District Court, the Corporate Transparency Act would have required over 32 million small businesses in the U.S. to file beneficial ownership information reports with the Department of the Treasury by January 1, 2025.

Scammers Abound

Filers and their advsers should note that, as with any broad federal mandate, opportunities to be scammed abound.   Sponsored commercial websites such as "BOIregistration.com" and "BOIR.org" are positioned by search engines ahead of the official FinCEN.gov website, at which filers can complete the requirement for free.