The U.S. District Court for the Eastern District of Texas has stayed the last remaining nationwide injunction against enforcement of the Corporate Transparency Act (CTA) in Smith v. U.S. Department of the Treasury.
This decision follows the United States Supreme Court’s ruling in Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland. As a result, CTA enforcement is now active and Reporting Companies are required to submit CTA Reports.
In response to the ruling, the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued guidance(goes to new website) extending certain compliance deadlines for Reporting Companies:
- Reporting Companies that were created or registered in the United States prior to January 1, 2024: The deadline to file initial CTA Reports with FinCEN has been extended to March 21, 2025 (previously January 1, 2025).
- Reporting Companies created or registered on or after February 18, 2025: These Reporting Companies have 30 days to file their initial CTA Reports with FinCEN.
FinCEN has also indicated that it intends to initiate a process this year to revise the CTA and its reporting requirements to reduce the burden for certain Reporting Companies, but it is unlikely that any decisions will be made before the filing deadline.
Although CTA enforcement has resumed, there is potential legislative change to monitor. The U.S. House of Representatives recently passed HR 736, titled “Protect Small Businesses from Excessive Paperwork Act of 2025,” which would extend the CTA filing deadline for pre-existing Reporting Companies (formed prior to January 1, 2024) to January 1, 2026. However, the bill remains under Senate committee review and will not become law unless approved by the Senate and signed by the President. Reporting Companies should not delay CTA compliance while awaiting potential legislative relief.
