Key takeaways
- FinCEN enforcement resumes: Courts lift injunctions, allowing FinCEN to enforce CTA’s BOI reporting requirements
- New deadline and potential rule changes: BOI reports due by March 21, 2025 for many reporting companies; FinCEN may ease deadlines and rules for small businesses and low-risk entities
- Congressional extension proposed: House passes bill to extend deadline to January 1, 2026; Senate consideration pending
On February 17, 2025, the U.S. District Court for the Eastern District of Texas, Tyler Division granted a motion to stay its previous nationwide injunction in the Smith v. U.S. Department of the Treasury1 case, effectively paving the way for the Financial Crimes Enforcement Network (FinCEN) to enforce the beneficial ownership information (BOI) reporting requirements of the Corporate Transparency Act (CTA) and its implementing regulations.
Looking back
On January 23, 2025, the U.S. Supreme Court issued its opinion in the Texas Top Cop Shop, Inc.2 case, staying a nationwide injunction issued by the U.S. District Court for the Eastern District of Texas, Sherman Division that had prevented FinCEN from enforcing the CTA. However, a separate nationwide injunction blocking enforcement of the CTA remained in effect in the Smith case. On February 5, 2025, the defendants in the Smith case filed a notice of appeal and a motion to stay the court’s preliminary injunction pending the defendants’ appeal to the U.S. Court of Appeals for the Fifth Circuit. On February 17, 2025, the court granted the defendants’ motion to stay the nationwide injunction pending appeal, citing the U.S. Supreme Court decision in the Texas Top Cop Shop, Inc. case.