BOI Reporting Remains on Hold
In light of a recent federal court order, the Financial Crimes Enforcement Network (FinCEN) has clarified that companies covered by the Corporate Transparency Act's (CTA's) beneficial ownership information (BOI) reporting requirement are not currently required to file BOI reports with FinCEN. Also, they are not subject to liability if they fail to file BOI reports while the order remains in place.
On Jan. 23, 2025, the U.S. Supreme Court granted the government’s motion to stay a nationwide injunction issued by a judge in Texas (Texas Top Cop Shop, Inc. v. McHenry – formerly, Texas Top Cop Shop v. Garland). However, a separate nationwide order issued by a different judge in Texas (Smith v. U.S. Department of the Treasury) remains in place, so reporting companies are still not currently required to file BOI with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. The U.S. Department of Justice has not yet filed a notice of appeal in the Smith case.
FinCEN also clarified that reporting companies may continue to voluntarily submit BOI reports.