The U.S. District Court for the Eastern District of Texas has granted a preliminary injunction requested by the National Federation of Independent Business (NFIB). This decision blocks the U.S. Department of Treasury from enforcing the beneficial ownership information (BOI) reporting requirements as outlined in the Corporate Transparency Act (CTA).
Beth Milito, Executive Director of NFIB’s Small Business Legal Center, expressed relief at the court's decision, stating, “The BOI reporting requirements are a harmful invasion of small business owners’ privacy and a misuse of their valuable time. Thankfully, the Court agreed and granted a preliminary injunction, giving small business owners a reprieve from this burdensome rule.”
NFIB praised the court's ruling as a significant victory for small businesses across the nation. Milito noted that many small businesses were approaching a deadline just five weeks away to comply with these regulations. She reiterated that “this ruling is a huge victory for small businesses nationwide, and just in time.”
The lawsuit filed by NFIB argues that the CTA is unconstitutional. It claims that it overreaches Congress’s powers concerning states, improperly mandates speech, infringes upon First Amendment rights related to anonymous association, and violates Fourth Amendment protections against revealing private information.
For more details on this issue, interested parties can visit the NFIB Small Business Legal Center.
