Enforcement of the Corporate Transparency Act (the “CTA”) had been on hold since a December 26, 2024 ruling from the United States Court of Appeals for the Fifth Circuit in the case of Texas Top Cop Shop, Inc., et al. v. Garland. The government appealed that ruling to the United States Supreme Court on December 31. On January 23, the Supreme Court granted the government’s application. This means that the injunction that was blocking enforcement of the CTA is lifted, and the government may proceed with enforcing the CTA and its filing requirements. However, despite the Supreme Court’s order, a separate nationwide injunction issued by a different federal judge in Smith v. U.S. Department of the Treasury still remains in place. As a result, reporting companies are not currently required to file beneficial ownership information with FinCEN.
What does this mean for reporting companies?
For reporting companies, the situation is currently unchanged from December 26. Entities that have already filed their reports do not need to do anything. Entities wishing to file voluntarily may still do so. Entities that have not filed and do not wish to file voluntarily should continue to monitor developments.
