Since our previous advisory, there have been further legal developments affecting the Corporate Transparency Act (CTA) reporting requirements. While the U.S. Supreme Court recently ruled in favor of the Treasury Department, a separate nationwide injunction issued in the case of Smith v. United States Department of the Treasury, 2025 WL 41924 (E.D. Tex. Jan. 7, 2025) remains in place, meaning the CTA’s beneficial ownership information (BOI) reporting obligations remain unenforceable for now.
However, FinCEN is still accepting voluntary filings, and businesses should be prepared to act quickly if the remaining injunction is lifted.
Key CTA Developments
- December 3, 2024 – A U.S. District Court issued a nationwide injunction blocking CTA enforcement. (see Advisory for details)
- December 23, 2024 – The Fifth Circuit temporarily lifted the injunction, reinstating the BOI reporting requirements. (see recent Advisory for details)
- December 26, 2024 – The Fifth Circuit vacated its own stay, once again pausing enforcement issuing an order in Texas Top Cop Shop, Inc. et al. v. Garland et al., which effectively halted the enforcement of BOI reporting requirements under CTA.
- January 7, 2025 – A new nationwide injunction was issued in the separate case of Smith v. United States Dep’t of the Treasury, further blocking CTA enforcement.
- January 24, 2025 – The U.S. Supreme Court overturned the initial injunction in the case of Texas Top Cop Shop, Inc. et al. v. Garland et al., but the January 7 ruling remains in effect, meaning CTA reporting remains on hold.
Current Status & Next Steps for Businesses
- The enforcement of the CTA reporting rule is still blocked, and companies currently are not required to file BOI reports.
- The government may appeal the remaining injunction, and a court ruling could reinstate the requirements at any time.
Despite the uncertainty, we strongly encourage businesses to remain prepared:
- Assess Your Obligations – Determine if your company is subject to CTA reporting if the injunction is lifted.
- Monitor Further Developments – Given the evolving legal landscape, companies should be ready for quick compliance action.
- Consider Voluntary Compliance – Businesses may still submit BOI reports to FinCEN proactively.
- Prepare for Future Changes – If CTA reporting resumes, companies must act fast to meet any reinstated deadlines.
The CommLaw Group can help!
Contact us for assistance in navigating your company’s reporting obligations. Our team is ready to support you in ensuring full compliance with all relevant reporting requirements.
Michael Donahue — Tel: 703-714-1319 / E-mail: mpd@CommLawGroup.com
Diana James – Tel: 703-663-6757 / E-mail: daj@CommLawGroup.com