Key takeaways:
- The U.S. Supreme Court granted a stay of the national injunction on the Corporate Transparency Act (CTA) on January 23, 2025, deeming Beneficial Ownership Information Report filings mandatory.
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). As a result, beneficial ownership information (BOI) reporting requirements are now mandatory. FinCEN is expected to provide further guidance on updated reporting deadlines and potential penalties for non-compliance.