On January 23, 2025, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., the Supreme Court of the United States (SCOTUS) granted the government the ability to lift the injunction which halted enforcement of the Corporate Transparency Agency (CTA) on December 26, 2024. SCOTUS also sent the case back to the Fifth Circuit Court of Appeals to be decided on the merits. Oral arguments are scheduled to take place in March 2025, meaning the future of the CTA remains in question.
However, a separate nationwide injunction, issued on January 7, 2025, in the case of Smith v. U.S. Department of the Treasury, is unaffected by SCOTUS’s order in Texas Top Cop Shop and remains in place.
The Financial Crimes Enforcement Network (FinCEN) issued the below alert on January 24, 2025:
“In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
Companies wishing to make voluntary filings are reminded that Beneficial Ownership Information (BOI) filings are made at fincen.gov/boi. There is no fee to file. For more information on BOI filing scams, click here.
We will continue to closely monitor this situation and provide updates as needed.
Previous related legal updates concerning the Corporate Transparency Act can be found here.
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