Reed Smith Client Alerts

Key takeaways

  • Despite the Supreme Court’s stay of nationwide injunction in Texas Top Cop Shop, Inc., a separate preliminary injunction is blocking CTA enforcement
  • Reporting companies under the CTA are not currently required to file beneficial ownership information with FinCEN
  • FinCEN continues to accept voluntary beneficial ownership submissions from reporting companies that choose to file
  • Companies should continue to monitor their obligations and reporting requirements under the CTA

On January 23, 2025, the U.S. Supreme Court issued its order in the Texas Top Cop Shop, Inc. case and stayed the nationwide injunction (issued by the U.S. District Court for the Eastern District of Texas and affirmed by the U.S. Court of Appeals for the Fifth Circuit) on the enforcement of the Corporate Transparency Act (the CTA) by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network ((FinCEN). However, because a separate nationwide injunction blocking the enforcement of the CTA by FinCEN was issued by a Texas court in a different case on January 7, 2025, reporting companies are currently not required to file beneficial ownership information with FinCEN. See Smith v. U.S. Department of the Treasury, No. 6:24-cv-00336-JDK, 2025 U.S. Dist. LEXIS 2321 (E.D. Tex. Jan. 7, 2025).