On January 23, 2025, the Supreme Court temporarily stayed the CTA injunction issued in a recent Texas case (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). However, the reporting obligations under the CTA are still on hold pursuant to a second injunction issued in another Texas case (Smith v. U.S. Department of the Treasury).
FinCEN confirmed this in an announcement posted to its website on January 24, 2025, stating “[i]n light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
Now, more than ever, it is unclear what the fate of the CTA will be. In addition to the multiple active federal cases, we have yet to see how the new administration or Congress will approach the CTA. We continue to recommend that companies stay prepared and keep their beneficial ownership information up to date. Staying informed is also imperative as the enforcement and status of the CTA are changing regularly.