The Corporate Transparency Act (CTA) remains on hold despite a recent Supreme Court ruling. On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction that had been issued by a federal judge in Texas in December 2024 (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). However, a different federal judge in Texas in the case Smith v. U.S. Department of the Treasury had also issued a nationwide injunction prohibiting enforcement of the CTA on January 7, 2025. The recent Supreme Court ruling did not directly address the injunction in the Smith case. Therefore, that injunction remains in place. The FinCEN website states that “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.”
