On January 23, 2025, the U.S. Supreme Court granted the U.S. Department of Justice’s request to stay the nationwide injunction that had previously banned enforcement of the Corporate Transparency Act (CTA) and its key implementing regulations (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland).
However, despite this decision by the U.S. Supreme Court, a separate nationwide injunction issued by a federal court in Texas continues to prevent enforcement of the CTA’s reporting requirements (Smith v. U.S. Department of the Treasury).
In response to the CTA’s legal challenges, FinCEN has suspended enforcement of the CTA’s reporting requirements while the Smith injunction remains in force. FinCEN has also indicated that reporting companies may continue to voluntarily submit beneficial ownership information reports.
