In yet another turn of events regarding the Corporate Transparency Act (CTA), on January 23, 2025, the U.S. Supreme Court removed the stay and effectively eliminated the nationwide injunction on the CTA, allowing the government to reinstate enforcement of the CTA and its Beneficial Ownership Information (BOI) reporting requirements.
As of January 24, 2025, FinCEN will accept a voluntarily submitted BOI report, but reporting is not required due to the other pending litigation (Smith v. U.S. Department of the Treasury). In its January 24 update, FinCEN states:
“Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
Regardless of the January 23 ruling, the Supreme Court’s decision does not address the underlying case, which is still under appeal in the Fifth Circuit. Oral arguments for the expedited appeal in Texas Top Cop Shop remain scheduled for March 25, 2025.
Key Takeaways for Reporting Companies
- No Mandatory BOI Reporting: FinCEN has stated BOI reporting is not required at this time.
- Decide on Your Action: The back-and-forth and having to monitor can be time consuming and the BOI reporting requirements may become enforceable again. You should discuss with your legal team and decide whether you want to file your BOI report.
As we’ve seen, the legal landscape on the CTA could quickly shift again. As we wait to hear guidance on a new deadline, we strongly encourage you to consult with counsel on the best course of action, especially if you want beneficial ownership reports to be filed for one or more entities.
We’ll continue to monitor this latest announcement and the deadlines that will follow. Visit our CTA Resource Page for the latest information, and if you have any questions or need assistance, please reach out to us via our contact form or by calling (605) 224-9189.