FEDERAL JUDGE STRIKES DOWN THE NEW FINCEN RULE REQUIRING REPORTING ON CASH SALES TO TRUSTS AND OTHER ENTITIES

A United States District Judge in Texas (EDTX) has ruled that the FinCEN regulations, which became effective 1 March, 2026, and which required reporting on all cash sales of residential real estate to trusts and corporations, was an unlawful extension of the Bank Secrecy Act. Obviously, there will be an appeal to the Fifth Circuit, and most likely to the US Supreme Court, but this decision throws compliance with the regulations into a quandry. There have been three other District Court decisions approving the regulations, which sets up the probability of Conflict Certiorari to the High Court eventually, when those cases hit the Courts of Appeal.

Read the complete text of the 32-page decision here.

https://storage.courtlistener.com/recap/gov.uscourts.txed.237265/gov.uscourts.txed.237265.34.0.pdf