Mark L. Brasee
402.978.5306mbrasee@fraserstryker.com email Mark
On January 23, 2025, the U.S. Supreme Court (the “Court”) granted the United States Department of Justice’s request to stay a lower court’s nationwide injunction (Texas Top Cop Shop, Inc. v. McHenry, formerly Texas Top Cop Shop v. Garland) enjoining the enforcement of the Corporate Transparency Act (“CTA”), which had been previously confirmed by the Fifth Circuit in December 2024.
Despite this ruling by the Court – on January 7, 2025, a separate judge of the U.S. District Court for the Eastern District of Texas issued an additional nationwide injunction on the CTA in Smith v. US Department of the Treasury. This nationwide injunction was not addressed by the Court’s stay. Consequently, a nationwide injunction against the CTA remains, preventing its enforcement by the Financial Crimes Enforcement Network of the United States Department of Treasury (“FinCEN”).
On January 24, 2025, FinCEN confirmed that compliance with the CTA continues to be voluntary in light of the second nationwide injunction in Smith. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. Fraser Stryker will continue to provide updates regarding further material developments as they arise.
This article has been prepared for general information purposes and (1) does not create or constitute an attorney-client relationship, (2) is not intended as a solicitation, (3) is not intended to convey or constitute legal advice, and (4) is not a substitute for obtaining legal advice from a qualified attorney. Always seek professional counsel prior to taking action.