Client Alert 1/23/25: CTA Injunction Remains

There has once again been movement related to the status of enforcement of the Corporate Transparency Act’s (“CTA”) Beneficial Ownership Reporting. On January 23, 2025, the Supreme Court granted the government’s motion to stay the nationwide injunction issued in the Texas Top Cop Shop, Inc. v. McHenry matter. However, with another matter still pending in the federal court (Smith v. U.S. Department of Treasury), the injunction remains in place and companies are not currently required to file beneficial ownership information with FinCEN.

During this period of uncertainty, reporting companies continue to be encouraged to proceed with gathering the needed information to complete the beneficial ownership reporting requirement of the CTA. Once collected, reporting companies can choose to either voluntarily report and complete the filing or wait to hear the decision of the federal court. Either way it is important to be prepared and ready to file as we can expect any extension of the deadline granted by the government in the event that the injunction is fully lifted will be brief.

Additional information about the CTA and specific instructions regarding the online reporting process, including step-by-step instructions, can be found at https://fincen.gov/boi and https://boiefiling.fincen.gov/help.

Commonwealth Trust Company is pleased to provide this article as a guide. Commonwealth Trust Company is not engaged in the practice of law and is not providing legal advice by the provision of these materials. Commonwealth Trust Company recommends that clients seek the opinion of their attorney regarding the specific legal and tax issues addressed in this article.