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Game On – Again, Not Exactly: Supreme Court Stays CTA Universal Injunction

January 24, 2025

Read Time: 1 min

The rollercoaster has more hills and turns. On January 23, 2025, the U.S. Supreme Court agreed that the Government is entitled to a stay of the universal injunction of the Corporate Transparency Act (CTA). In light of this action by the Supreme Court, FinCEN has stated the following:

On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, 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.

For now, BOI reports are not required to be filed. Stay tuned as we monitor this topic.

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Game Off: Fifth Circuit’s Merits Panel Overturns Motions Panel; Reinstates Preliminary Injunction Staying Enforcement of the CTA

December 27, 2024

In a rollercoaster of a ride, the merits panel of the U.S. Court of Appeals for the Fifth Circuit, on December 26, 2024, vacated the prior order of the Fifth Circuit’s motions panel staying the preliminary injunction enjoining enforcement of the Corporate Transparency Act (CTA).

Alert

Game On: Preliminary Injunction on Corporate Transparency Act Lifted; Filing Deadlines Extended

December 26, 2024

The United States Court of Appeals for the Fifth Circuit on December 23, 2024, issued an order lifting a prior ordered issued by a federal district court in the Eastern District of Texas granting a nationwide preliminary injunction that: (1) enjoined the Corporate Transparency Act (CTA), including enforcement of that statute and regulations implementing its beneficial ownership information (BOI) reporting requirements, and (2) stayed all deadlines to comply with the CTA’s reporting requirements.

Corporate Transparency Act Burden Highlighted by Certain Holding Company Structures

December 17, 2024

Much has been written about the filing requirements under the Corporate Transparency Act (CTA) in the last year. Currently, enforcement of the CTA has been placed on hold. On December 3, 2024, a federal district court in the Eastern District of Texas issued an order granting a nationwide preliminary injunction that (1) enjoins the CTA, including enforcement of that statute and regulations implementing its beneficial ownership information reporting requirements, and (2) stays all deadlines to comply with the CTA’s reporting requirements. Nevertheless, should the injunction be lifted, reporting companies need to be prepared to comply with the CTA.

And Now We Wait – DOJ Appeals to Fifth Circuit and FinCEN Makes a Statement on CTA Preliminary Injunction

December 9, 2024

On December 5, 2024, the Department of Justice (DOJ), on behalf of the Department of the Treasury, filed a Notice of Appeal to the Fifth Circuit challenging the nationwide preliminary injunctive relief from compliance with the reporting obligations under the Corporate Transparency Act (CTA). As discussed in our prior alert, on December 3, 2024 (amendedMore

Now What? – Texas Court Nationally Enjoins Corporate Transparency Act as “Likely Unconstitutional”

December 5, 2024

On December 3, 2024, the U.S. District Court for the Eastern District of Texas entered into a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act (CTA) and compliance with the beneficial ownership information (BOI) reporting requirements to the U.S. Department of the Treasury Financial Crimes and Enforcement Network (FinCEN).

Corporate Transparency Act Held Unconstitutional

March 6, 2024

The Corporate Transparency Act (CTA) is unconstitutional, according to a March 1, 2024, ruling by Judge Liles Burke of the U.S. District Court for the Northern District of Alabama.