If you've been following the ongoing developments around the Corporate Transparency Act (CTA), there's another significant update : Reporting companies are not currently required to file Beneficial Ownership Information (BOI) reports with FinCEN due to an existing federal court order. While businesses may still choose to submit their reports voluntarily, there is no current enforcement requirement in place.
What's Happening Now?
On January 23, 2025, the Supreme Court granted the government’s request to stay a nationwide injunction issued in Texas Top Cop Shop, Inc. v. McHenry (formerly Texas Top Cop Shop v. Garland). This would have allowed the CTA to move forward; however, another ruling in a separate case, Smith v. U.S. Department of the Treasury, continues to block enforcement. As a result, reporting companies are not obligated to file BOI reports until further notice.
Key Takeaways for Businesses:
No Immediate Filing Obligation: Reporting companies are currently not required to submit BOI reports.
No Liability for Non-Compliance (for now): Companies that choose not to file will not face penalties while the Smith order remains in effect.
Voluntary Reporting is Open: Businesses that wish to file their reports can still do so voluntarily.
What’s Next?
FinCEN has not provided any indication of plans to appeal the Smith ruling at this time, leaving uncertainty about when or if enforcement will resume. However, businesses should stay vigilant for further updates and be prepared to comply should the legal landscape shift again.
What Should You Do Now?
Monitor Updates: Stay informed on any developments from FinCEN and the courts that could impact your reporting obligations.
Prepare for Compliance: Even though filing is currently not mandatory, it’s a good idea to gather necessary information and be ready to submit reports when required.
Consult Our Firm: If you're unsure about your reporting obligations, now is a great time to book a consultation with our firm here to ensure you’re prepared.
For now, take a breath—but stay ready. The regulatory environment surrounding the CTA continues to evolve, and it’s crucial to remain informed to avoid last-minute compliance challenges.
We’ll continue to monitor these developments and provide updates as they happen.