Why Did Court Halt CTA Reporting Requirements?

As I reported yesterday, the pause button has been hit on the corporate Transparency Act, or CTA, which would have required certain businesses to report ownership information by January 1 or be subject to possible large daily fines. The decision came from the US District Court for the Eastern District of Texas.

Jake Parker is Secretary and General Counsel for the North Carolina Farm Bureau…

“In this case, the court said this issue is so large and has such a broad impact, a nationwide stay is appropriate, and that was a really big deal, because it means across the country, nobody has to file these papers before the end of the year. And so that was a real big, it was something we that, like I said, we asked Congress to do it, and they haven't acted yet. And so the court essentially stepped in and put things on hold while the rest of the case plays out.”

Parker says it will take several months for appeals to be filed and read but in the meantime, farmers, ranchers and other businesses, targeted by the law will not have to submit the files.