On January 23, 2025, the U.S. Supreme Court granted the federal government’s motion to stay the nationwide injunction blocking the Corporate Transparency Act’s (CTA) enforcement, issued by the federal district court of the Eastern District of Texas in Texas Top Cop Shop, Inc. v. McHenry (formerly Texas Top Cop Shop v. Garland et al. (E.D. Tex., No. 4:24-cv-00478)). In isolation, the stay would mean that CTA reporting requirements are back in effect, but that’s not the case, due to a separate nationwide injunction that remains in effect from a January 7, 2025 decision in Smith v. U.S. Department of the Treasury, which was issued by a separate federal judge in the Eastern District of Texas. The government has not (yet) appealed this injunction and it remains to be seen whether the Trump administration will pursue CTA enforcement. Thus, practically, the Supreme Court’s ruling has not changed the status quo for the time being.
Reporting companies are still not required to file beneficial ownership information reports (BOIRs) or to update previously filed reports. However, we advise that reporting companies continue preparing for CTA enforcement, if and when the injunction in Smith is lifted. Reporting companies that have not yet filed should gather information required for the initial filing. Those reporting companies that have already submitted their BOIRs should continue to monitor and track any changes that would require an update to a previously filed BOIR.