Beneficial Owner Reporting Still Paused For Now

The legal saga of the Corporate Transparency Act continues.

On January 23, 2025, the Supreme Court reversed the December 3, 2024, nationwide injunction that had paused the filing requirements under the Corporate Transparency Act. However, after that December 3, 2024 injunction had been put in place, a separate nationwide injunction was entered by a separate judge in a separate case on January 7, 2025. The name of that case is Smith et al v. United States Department of Treasury, et al (No. 6:2024cv00336-JDK Document 30 (E. D. Tex. 2025)).

The nationwide injunction entered on January 7, 2025, remains in effect, since it was not addressed by the Supreme Court’s reversal of the December 3, 2024 injunction.

On January 24, 2025, the Financial Crimes Enforcement Network (FinCEN) confirmed on its website that reporting companies remain not currently required to file beneficial owner information, due to the January 7, 2025, nationwide injunction. As a result, the January 1, 2025, filing due date for existing entities remains suspended until the ongoing litigation ends.

The January 7, 2025, injunction could be separately appealed, but it is also possible that the Treasury Department and/or the Department of Justice of the new administration will not challenge it.

Any company required to report under the provisions of the law (prior to the injunction) which has not filed the required report should remain vigilant and ready to meet the filing requirements if/when the injunction is lifted. This remains a volatile area, and the outcome of the litigation is not yet known.