On January 23, 2025, the US Supreme Court stayed the nationwide injunction issued by the US District Court for the Eastern District of Texas, halting the enforceability of the Corporate Transparency Act (CTA).
However, in light of a separate nationwide order issued by a different Texas federal judge, the enforcement of reporting remains on hold. The Financial Crimes Enforcement Network (FinCEN) issued an alert providing that “reporting companies are not currently required to file beneficial ownership information” and will not be subject to liability for failure to file these reports. Given the shifting stance of the courts on the CTA’s validity, we continue to recommend reporting companies voluntarily submit their beneficial ownership reports to ensure compliance.
Attorneys at Barclay Damon will continue to monitor any judicial and legislative updates and further guidance from FinCEN regarding the CTA.
If you have any questions regarding the content of this alert, please contact Danielle Katz, counsel, at dkatz@barclaydamon.com; Karina Shahine, associate, at kshahine@barclaydamon.com; or another member of the firm’s Corporate Practice Area.