Key takeaways:
- FinCEN issues additional guidance with respect to the U.S. Supreme Court’s January 23, 2025, ruling to lift the nationwide injunction on the Corporate Transparency Act (CTA).
- Beneficial Ownership Information reporting requirements remain voluntary pending outcome of separate nationwide order.
On December 3, 2024, a federal district court in the case of Texas Top Cop Shop, Inc. v. Garland, No. 4:24-CV-478, entered an order enjoining enforcement of the Corporate Transparency Act and its corresponding reporting rule.
The Government appealed, and on December 23, 2024, a motions panel of the U.S. Court of Appeals for the Fifth Circuit granted the Government’s emergency motion for a stay pending appeal.
On December 26, 2024, the Fifth Circuit vacated the stay that had been issued by the motions panel that had lifted the preliminary nationwide injunction. As a result, the CTA BOI reporting requirements are back to being voluntary, pending the appeal, which the court confirmed remains expedited.
On January 23, 2025, the U.S. Supreme Court lifted the nationwide injunction on the enforcement of the Corporate Transparency Act (CTA).
On January 24, 2025, FinCEN issued additional guidance with respect to the U.S. Supreme Court’s ruling to lift the nationwide injunction issued by a federal judge in Texas that enjoined enforcement of the Corporate Transparency Act (CTA). Due to the fact that a separate nationwide order issued by a different federal judge in Texas remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN. However, FinCEN has advised that reporting companies may continue to voluntarily submit beneficial ownership information reports.
