Client Alert: Supreme Court Allows Corporate Transparency Act Enforcement But FinCEN Notes Another Stay Prevents Current Implementation

Thursday afternoon, the US Supreme Court said that it would allow the Corporate Transparency Act (CTA) to be implemented by the US Treasury Department, overturning the injunction issued by the Texas District Court that stayed the law in early December 2024 (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland).

On Friday, January 24th, 2025, FinCEN- the agency tasked with enforcing the law- announced that in light of another nationwide stay on implementing the law issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury), reporting companies are still 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.

Please see our prior alerts including the filing requirements and original deadlines here:

1. Client Alert: The Corporate Transparency Act – Sherin and Lodgen
2. Corporate Transparency Act – What You Need to Know – Business Law

While Sherin and Lodgen will not be filing the CTA Reports directly, we can assist you with determining if a filing is necessary and provide you with the names of one of the many companies who work specifically on filing the CTA Reports.

We will continue to monitor any change that results and advise accordingly.