On January 23, 2025, the U.S. Supreme Court stayed the order of the U.S. District Court for the Eastern District of Texas in Texas Top Cop Shop, Inc., et al. v. James R. McHenry, Acting Attorney General of the United States, et al. (formerly Texas Top Cop Shop, Inc. v. Merrick Garland, Attorney General of the United States, et al.) (“Texas Top Cop Shop”), which provided for a nationwide injunction against enforcement of the Corporate Transparency Act, pending the disposition of the appeal in the U.S. Court of Appeals for the Fifth Circuit or pending disposition of a petition for a writ of certiorari, if timely sought.

However, on January 7, 2025, while the appeal of Texas Top Cop Shop was still pending before the Supreme Court, the U.S. District Court for the Eastern District of Texas issued an additional nationwide injunction against the enforcement of the Corporate Transparency Act in Smith, et al. v. U.S. Department of the Treasury.

On January 24, 2025, the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) acknowledged the stay by the Supreme Court while also acknowledging that because “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.”

Companies should remain alert as further developments are expected.

For more information about the Corporate Transparency Act and its reporting requirements, please visit FinCEN’s website located at www.fincen.gov/boi.