Companies Breathe Sigh of Relief With Halt to Disclosure Mandate

A Texas federal judge’s order to temporarily block the government from enforcing the Corporate Transparency Act has prompted businesses across the US to pause disclosure preparations just weeks before the law’s original 2025 deadline, potentially saving them tens of thousands in compliance costs.

Judge Amos L. Mazzant III of the US District Court for the Eastern District of Texas issued a preliminary injunction Dec. 3, ruling the law likely went beyond Congress’s constitutional authority to regulate interstate and foreign commerce.

Tax practitioners say their clients view the order as an opportunity to save money by avoiding what they’ve called burdensome ...