Learning Center

We keep you up-to-date on the latest tax changes and news in the industry.

BREAKING NEWS: Beneficial Ownership Information Reporting Suspended

Article Highlights:

  • Injunction Halts Enforcement of the Corporate Transparency Act (CTA)

  • What Happened?

  • What Does This Mean to You?

  • What’s Next?

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a game-changing nationwide injunction that temporarily halts enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements. Here’s what this means for you and the compliance landscape in the weeks ahead.

What Happened? - In the case Texas Top Cop Shop, Inc. v. Garland, the court found the CTA likely unconstitutional. Its key reasoning? Congress overstepped its legislative powers by enacting a law that mandates broad disclosures from companies across the United States. The court criticized the CTA as a dangerous overreach, likening its requirements to "quasi-Orwellian" federal oversight.

For context, the CTA required millions of U.S. companies to report sensitive data about the companies’ owners to the Financial Crimes Enforcement Network (FinCEN) by January 1, 2025, with non-compliance subject to civil and criminal penalties. The purpose of the reporting requirement is to help the government identify individuals engaged in money laundering and other illegal activities.

The court ruled that the BOI filing obligations are not justified under the Constitution’s Commerce Clause or Necessary and Proper Clause, staying all enforcement actions nationwide.

What Does This Mean to You?

For now, businesses that would otherwise have had an obligation to file a BOI report are not required to meet the January 1, 2025, reporting deadline. This includes:

  • Existing entities previously obligated to file BOI reports.

  • Newly formed companies created or registered in 2024.

Additionally, penalties for non-compliance under the CTA are on hold. This reprieve may relieve immediate compliance burdens, especially for small and medium-sized businesses already grappling with increased regulatory complexities.

What’s Next?

The federal government is widely expected to appeal this decision, with the U.S. Department of Justice potentially taking the case to the Fifth Circuit Court of Appeals or even the Supreme Court. While the injunction is in place, compliance requirements remain suspended. However, if the injunction is overturned, enforcement could resume abruptly.

Here’s what you can do to be prepared:

  1. Stay Informed: Whether the DOJ files an appeal or if further clarification is issued by FinCEN.

  2. Recordkeeping: While filing is paused, it’s wise for businesses to maintain accurate ownership records in case compliance resumes, particularly those preparing for mergers, acquisitions, or new entity formations, which might intersect with BOI reporting.

If you have questions about this development or would like to complete the reporting requirement regardless of the injunction, please contact this office.

Share this article...

Want our best tax and accounting tips and insights delivered to your inbox?

Sign up for our newsletter.

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the and .

Benefits of having a business advisor

Your CFO, Reimagined as a Financial Doctor

Diagnosing root causes, prescribing solutions, and guiding your property business toward long-term wealth.

Our CFO | Advisor

Raquel is a passionate business owner. Now, she is returning to her grassroots with a twist - guiding clients with her expertise as a CPA, she can advise your company as your trusted CFO and Advisor.

  • Raquel Deodanes, MS, CPA

    Co-Founder

    CPA with Real-World Experience – I help property managers stay profitable, tax-efficient, and cash flow positive.
    Tax Strategist – Former advisor at California’s revenue agency.
    Trusted by 4,000+ Businesses – Experience across CA, FL, TX, NV, and beyond.
    Real Estate Investor – I understand the financial realities of property management.
    Entrepreneur – I’ve built businesses and know the challenges you face.

Frequently Asked Questions

We diagnose financial inefficiencies, treat problems like poor cash flow or rising costs, and guide you to long-term financial health. That includes cleaning up your books, forecasting cash flow, optimizing operations, and helping you grow your portfolio with confidence — just like a doctor builds a custom care plan for a patient.

Bookkeepers record transactions. CPAs file your taxes. We connect the dots — helping you understand your numbers, strategically improve them, and make smarter decisions throughout the year. We work alongside your existing team to drive performance, not just compliance.

If you're unsure where your cash is going, struggling with rising costs, planning to scale, or just tired of reacting instead of planning — now is the right time. We help you get ahead of problems, not just clean up after them.

Clients typically see improved cash flow, cleaner books, higher NOI, better financial reporting, and a lot less stress at tax time. More importantly, you gain clarity, confidence, and control over your business — and a partner who helps you grow it.

Pricing

Painless, transparent pricing.

Let us take away your stress and give you back your time. Choose your perfect package today.

Base

$499 /mo
  • Dedicated finance expert

  • Bookkeeping with accrual basis

  • Includes P&L, balance sheet, and cash flow statements

Core

$999 /mo
  • Includes everything in Base, PLUS

  • Industry KPIs and financial ratios

  • Monthly virtual 1-hr meetings

  • Monthly rolling budget forecasts

Growth

$1999 /mo
  • Includes everything in Base, CORE

  • Budget vs. actuals variance analysis and review

  • Payroll and HR Platform