By Andy Medici | Phoenix Business Journal
Millions of small-business owners had been staring down a deadline to report ownership information to the Treasury Department as part of the Corporate Transparency Act, but that requirement is now up in the air after a court’s intervention.
Judge Amos Mazzant III of the U.S. District Court for the Eastern District of Texas on Tuesday issued a nationwide injunction halting the implementation of the new requirements under the Corporate Transparency Act. The requirements called for businesses with fewer than 20 employees to provide names, dates of birth, addresses and other identifying information about its owners.
“This is a temporary block on the CTA compliance requirements. It’s not a final decision. Businesses should continue to stay updated and monitor the case progress, as enforcement may resume if the Court’s order is reversed on appeal or if the Government ultimately prevails in the case.”
-Shruti Gurudanti, Rose Law Group partner & director of corporate transactions
