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Senate
SBIR
Updated: Dec 4, 2024
The injunction is a win against the Corporate Transparency Act for small-business owners everywhere.
FOR IMMEDIATE RELEASE
Wednesday, Dec. 4, 2024
Contact: Molly Day
202-552-2904
mday@NSBAadvocate.org
NSBA Applauds Nationwide Injunction Against CTA
Washington, D.C. – NSBA is applauding the ruling from the U.S. District Court of the Eastern District of Texas that sided in line with NSBA’s lawsuit against the U.S. Treasury Department. That ruling extends an injunction that will stop the CTA from going into effect. This means that now, not only NSBA members, but all small businesses will not have to file their Beneficial Ownership Information (BOI) reports to the Financial Crimes Enforcement Network (FinCEN) – for now.
Below is a statement from NSBA President and CEO Todd McCracken.
“NSBA has been leading the charge against the CTA for years. There is widespread confusion and massive concern among America’s smallest businesses about the BOI reports, and we couldn’t be more pleased that this court recognized that confusion and sided with NSBA on the unconstitutionality of the CTA.
“While this injunction isn’t permanent, this is a huge relief to the millions of small-business owners across the country who were facing a wildly complex regulatory regime, and fines that could exceed $500 per DAY and up to two years of jail time.
“NSBA will continue to fight—both through our lawsuit, the first one filed—and through our efforts in Congress. The various lawsuits working their way through the courts are a critical step in preventing a bad law from going into effect, however Congress has the power TODAY to right this wrong by passing legislation to delay, and, ultimately, repeal the CTA.
“No small-business owner should be spending time during the holidays worrying about a simple mistake landing them in jail—this injunction is a major win, but the battle continues.”
Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.
Read more about NSBA's work over the CTA since 2022 - America's oldest Small Business Advocate and the first advocacy group to file a lawsuit over this unconstitutional law.
