In the ongoing ping-pong game that is the Corporate Transparency Act, today (January 23) the US Supreme Court has allowed the government to enforce the CTA, which requires businesses to disclose their beneficial ownership information.
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This decision lifts the prior injunction and permits the law’s implementation while its constitutionality is reviewed by the Fifth Circuit. Arguments are scheduled to be heard on March 25. Justice Neil Gorsuch supported immediate action to clarify universal injunctive relief, while Justice Ketanji Brown Jackson dissented, arguing the government failed to demonstrate urgency. To read the case, visit Supreme Court opinions.
Based on recent history, we anticipate that FinCEN will soon clarify its position on CTA filings that are currently due or overdue.
JANUARY 24 UPDATE:
Following the Supreme Court ruling on January 23, many are asking: “What is the current status of the Corporate Transparency Act (CTA), and do we need to file Beneficial Ownership Information?” Our blog concludes with “now let’s see what FinCEN says” because the practical implications of yesterday’s ruling remain uncertain. A nationwide injunction was previously issued in a different pending case (Smith v. United States Department of the Treasury) that is not be impacted by yesterday’s decision.
In fact, The Wall Street Journal has reported with the headline: “Corporate Transparency Act Still Blocked Despite Supreme Court Decision.”
As updates become available from FinCEN (typically posted at https://fincen.gov/boi), we’ll continue to provide the latest information.
LATEST UPDATE:
FinCEN has now posted this online notice at https://fincen.gov/boi:
On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. 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.