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On January 23, 2025, the US Supreme Court granted the US government’s application to end the nationwide preliminary injunction against enforcement of the Corporate Transparency Act (CTA) issued by the District Court in Top Cop Shop on December 3, 2024. This injunction is currently on appeal with the Fifth Circuit. However, a separate nationwide order that also stayed the CTA beneficial owner reporting deadline remains in place. This order was issued by a different federal judge in Smith v. US on January 7, 2025.
There continues to be no requirement for reporting companies to file beneficial ownership information reports with FinCEN, notwithstanding the Supreme Court’s January 23, 2025, order in Texas Top Cop Shop. This was confirmed on January 24, 2025, by a posting of FinCEN on its website: Beneficial Ownership Information Reporting | FinCEN.gov. This posting also confirms that reporting companies are not subject to liability if they fail to file beneficial owner reports while the Smith v. US reporting stay remains in force.
We will continue to monitor the cases and report accordingly.
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