Earlier this week, we reported that the Supreme Court of the United States (“SCOTUS”) granted the Department of Justice’s (“DOJ”) December 31, 2024 petition to stay the nationwide injunction blocking enforcement of the CTA and its beneficial ownership information reporting (“BOIR”) requirement. That injunction was originally issued by the U.S. District Court for the Northern District of Texas in the case, Texas Top Cop Shop, Inc. v. Garland. The stay would have reinstated the BOIR requirement. However, on January 7, 2025, a different district court in Texas enjoined the reporting requirement in the case, Smith v. United States Department of the Treasury. That injunction, issued in the Eastern District of Texas, also applies nationwide and the DOJ has not appealed it as of yet.

What’s this mean for the CTA and the BOIR requirement? The Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”), which is responsible for implementing the BOIR requirement, has confirmed that despite the SCOTUS ruling staying the nationwide injunction issued in Texas Top Cop Shop, Inc., the nationwide injunction in Smith remains very much in effect. Thus, the reporting requirement is merely VOLUNTARY once again.

As always, we will continue to track the CTA saga and keep our readers up-to-date with any new developments. Nevertheless, given the mayhem surrounding BOIR and the potential for deadlines to resume quickly, we strongly recommend voluntary filing.

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