The Washington Report

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction enjoining the federal government from enforcing the Corporate Transparency Act (CTA). This means the Financial Crimes Enforcement Network (FinCEN), as part of the Treasury Department, cannot currently enforce the Beneficial Ownership Information (BOI) Reporting Rule enacted pursuant to the CTA. The lawsuit asserted that the CTA is outside of Congress’ power to regulate under the Commerce Clause and thus is unconstitutional.

NAR is reviewing the court order. Litigation continues and it is possible the federal government will appeal the preliminary injunction. NAR recommends that you consult legal counsel for legal advice regarding compliance and the implications of the preliminary injunction on their businesses. 

As of this writing, FinCEN’s BOI Reporting entity remains open and is accepting BOI Reports, despite the preliminary injunction’s prohibition on the government’s ability to implement or enforce the CTA and BOI Reporting Rule.

Please be sure to register and attend NAR’s free BOI Compliance webinar on December 10, 2025 from 2 – 3pm ET, for up-to-date information regarding the BOI Reporting Rule and the preliminary injunction.