Kotz Sangster Wysocki P.C., a leading business law firm based in Detroit, has announced that attorney Douglas Eyre has joined the firm in its Detroit office. Eyre is a seasoned attorney, bringing over 20 years of experience in construction law and commercial litigation to the firm.
Kotz Sangster attorneys have been recognized as 2024 Michigan Super Lawyers and Rising Stars.
On Tuesday, December 3rd, 2024, the US District Court for the Eastern District of Texas issued an order specifically prohibiting the federal government’s enforcement of the Corporate Transparency Act (CTA), which was enacted January 1st, 2024.
The Act requires all applicable US companies (estimated at approximately 32.5 million, as of January 1st, 2024) to provide the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) with in-depth, wide-reaching information regarding the company’s ownership and individuals who directly benefit from the company’s operations. Before the order to halt enforcement, the deadline for existing companies to submit their “beneficial owners information” (BOI) to FinCEN was January 1st, 2025.
The Texas Court was the second to rule against the CTA’s constitutionality, while three other courts across the country have ruled in favor of the Act’s constitutionality and implementation. In their ruling, the Court noted the substantial, irreparable harm that would befall the companies the Act applied to, specifically informing applicable companies that they would not need to submit information by the Act’s January 1st, 2025 reporting deadline.
While this injunction is not permanent and FinCEN still allows companies to submit their BOI information, Kotz Sangster will suspend filings for companies until the injunction is overturned on appeal. We will continue to keep our clients informed regarding future implementation of the CTA as the situation continues to evolve.