WASHINGTON, DC (December 23, 2024) – THE National Federation of Independent Business (NFIB) is extremely disappointed by today’s situation decision before the United States Court of Appeals for the Fifth Circuit in the NFIB case trial challenge the Corporate Transparency Law (CTA), Texas Top Cop Shop, Inc. et al. c. Garland, et al.. Earlier this month, the U.S. District Court for the Eastern District of Texas granted a nationwide sentence preliminary injunction in this case, which prevented the US Treasury Department from enforcing the CTA. Today’s ruling overturning this injunction allows the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to enforce the CTA and its beneficial ownership information (BOI) reporting requirements while our trial continues.
“Because of this decision, small business owners are left scrambling to meet the reporting requirements of this egregious law. Enforcing the January 1 compliance deadline will cause massive chaos for our nation’s small businesses,” said Beth Milito, executive director of the NFIB Small Business Law Center. “The district court, in granting the preliminary injunction, correctly recognized that the BOI’s reporting requirements would have devastating consequences for small business owners. Make no mistake, the NFIB is already working to quickly appeal this terrible decision and grant our main streets a reprieve from this harmful mandate.
More than 32 million small businesses across the country will once again be subject to this burdensome law, including the nearly 300,000 NFIB member businesses represented in this lawsuit. FIB supports THE Repealing Big Brother Overreach Lawlegislation that would repeal the CTA and permanently relieve small businesses of beneficial ownership requirements.
The NFIB Small Business Law Center protects the rights of small business owners in state courts. The NFIB is currently active in more than 40 cases in federal and state courts across the country and in the United States Supreme Court.