There have been new developments in the ongoing litigation surrounding the Corporate Transparency Act (CTA). Beneficial Ownership Information (BOI) reporting and CTA enforcement remain on hold for now, and FinCEN is continuing to refer to BOI reporting as voluntary (click here to visit FinCEN’s website with the latest updates).
On January 23, 2025, the Supreme Court granted a motion from the government to stay a nationwide injunction issued in the Texas Top Cop Shop case that we have discussed previously (click here to read more). In theory, this could have reinstated CTA enforcement and mandatory BOI reporting. However, a separate nationwide order has been issued by a different federal judge in Texas preventing enforcement of the CTA’s reporting requirements (see Smith v. U.S. Department of the Treasury). That order still remains in place. So, reporting companies are not currently required to file beneficial ownership information with FinCEN, and reporting companies are not subject to liability if they fail to file this information while the Smith order remains in force.
On its website, FinCEN states that “reporting companies may continue to voluntarily submit beneficial ownership information reports.”
CTA compliance continues to be a fluid situation as ongoing litigation works its way through the courts, and FMJ will continue to monitor. Please do not hesitate to reach out to Pat Shriver, Brad Hutter, or any of the other members of our Corporate Practice Group with questions about CTA compliance.
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