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Legal Update: CTA Injunction Remains in Effect

On January 23, 2025, the U.S. Supreme Court lifted a nationwide injunction in the case titled Texas Top Cop Shop, Inc. v. McHenry preventing enforcement of the Corporate Transparency Act (“CTA”). However, on January 7, 2025, a federal district court judge in a case titled Smith v. U.S. Department of Treasury issued a separate nationwide injunction preventing enforcement of the CTA.  The Supreme Court’s ruling in the Texas Top Cop Shop, Inc. case does not affect the injunction that was issued in the Smith case.  Accordingly, there is still a nationwide injunction in effect preventing enforcement of the CTA. 

As of the time of this alert, the filing of beneficial ownership information (BOI) reports  under the CTA is not required.  However, we note that the injunction in the Smith case could be narrowed or overturned at any time, causing the CTA to become enforceable again. We encourage reporting companies and affected individuals to continue to gather information necessary to file BOI reports. We note that FinCEN is continuing to accept voluntary BOI reports directly on FinCEN’s BOI Reporting Website, located at https://www.fincen.gov/boi.