The CTA which requires most US business entities, including most corporate brokerages, to report stakeholder information to the Treasury Department was preliminarily blocked nationwide by a Texas federal court on Tuesday, Dec. 3, 2024. As such, neither the CTA nor its reporting requirements can currently be enforced, and all reporting deadlines have been stayed nationwide.

The final reporting deadline was supposed to be Jan. 1, 2025 (for entities in existence as of Jan. 1, 2024). This would have applied to most corporate brokerages including agent owned corporations used primarily for tax purposes.

Since it is unknown whether the stay of enforcement will be upheld by an appellate court, it is recommended that business entities prepare their reports now but refrain from filing them until further notice.

For more information about the CTA, see our Quick Guide: The Corporate Transparency Act and Beneficial Owner Information Reporting

December 5, 2024