Written By: Oded Kadosh, Guy Milhalter, and Austin Ochoa
On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction blocking the Corporate Transparency Act (CTA) in Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland.
However, a separate nationwide injunction issued in Smith v. U.S. Department of the Treasury remains in place. As a result, reporting companies are not currently required to file beneficial ownership information (BOI) with FinCEN and are not subject to liability for failing to do so while the Smith order is in effect.
In its January 24, 2025 update, FinCEN confirmed that BOI reporting under the CTA remains voluntary. Reporting companies may choose to submit BOI reports but are not obligated to do so at this time. Further guidance from FinCEN is anticipated as litigation progresses.
