On December 3, 2024, the U.S. District Court for the Eastern District of Texas in Texas Top Cop Shop v Garland et al., issued a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act, questioning its constitutionality and its impact on small businesses.

As a result, businesses are now not obligated to file Beneficial Ownership Information reports or comply
with the CTA. Previously, businesses that met certain criteria were required to file reports with the Department of Treasury by January 1, 2025, or face severe penalties.

This injunction provides preliminary relief until the conclusion of legal proceedings. PAA will continue to monitor this litigation and advise dealers of any compliance requirements.