While the United States Supreme Court recently lifted one nationwide injunction against enforcement of the Corporate Transparency Act (CTA) in the case of Texas Top Cop Shop, Incorporated et al. v. McHenry (formerly Garland), Case No. 4:24-cv-00478, CTA reporting requirements currently remain suspended under a separate federal court order (Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336 (E.D. Tex.)).
However, enforcement of the CTA is likely to resume in the near future. On February 5, 2025, the Department of Justice filed a notice of appeal and motion to stay the Smith order, citing the Supreme Court’s previous ruling in Texas Top Shop.
In anticipation of the Smith court granting a stay of the injunction against enforcement of the CTA, the Financial Crimes Enforcement Network (FinCEN) has announced that it will extend the reporting deadline by 30 days from the date a stay (if any) is granted. FinCEN has also announced that during this 30-day period, it will “assess its options to modify further deadlines or reporting requirements for lower-risk entities, including many U.S. small businesses, while prioritizing reporting for those entities that pose the most significant national security risks.”
The latest developments are noteworthy as they signal the Trump Administration’s intent to continue implementation of the CTA, though perhaps on a more nuanced basis.
As of the date of this alert, FinCEN is not enforcing the CTA and its reporting rule against any individual or entity. Although companies subject to the CTA are not currently required to file beneficial ownership information, FinCEN continues to accept submissions on a voluntary basis.
