| Corporate Transparency Act Update
To be (effective) or not to be: CTA obligations remain on hold despite the Supreme Court lifting one injunction. On January 23, 2025, the Supreme Court lifted the nationwide injunction that was issued by the Fifth Circuit in Texas Top Cop Shop, Inc. v. McHenry. Nonetheless, due to the existence of a separate nationwide injunction issued in another federal case, Samantha Smith and Robert Means v. U.S. Department of Treasury, the Financial Crimes Enforcement Network (FinCEN) has stated that reporting companies are not currently required to file beneficial ownership information. FinCEN also stated that reporting companies will not be subject to liability if they fail to file while the order in the Smith case remains in force. In effect, the CTA remains on hold notwithstanding the recent Supreme Court decision. Our advice continues to be that those subject to the CTA should take reasonable steps to prepare for eventual filing in the event the injunction is lifted or the various challenges to the CTA are otherwise dismissed. |
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