On January 23, 2025, the U.S. Supreme Court granted the government’s motion to stay a nationwide injunction blocking the enforcement of the Corporate Transparency Act (“CTA”) issued by a federal judge in Texas in Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop, Inc. v. Garland. While a separate nationwide order issued by a different federal judge in Texas in Smith v. U.S. Department of the Treasury still remains in place, however, reporting companies are not currently required to file beneficial ownership information with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”). Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. Reporting companies may continue to voluntarily submit beneficial ownership information reports.
FinCEN has updated its alerts accordingly, which can be accessed HERE. Companies should track additional updates and guidance from FinCEN as a result of the ongoing litigation.
For more information, please contact Fluet’s Corporate + Transactional team.