In the continued evolving developments of the Corporate Transparency Act (“CTA”), on January 23, 2025, the United States Supreme Court granted the government’s motion to stay a nationwide injunction halting enforcement of the Corporate Transparency Act in Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland. However, a separate nationwide order issued by a different federal judge in Texas, in the case of Smith v. U.S. Department of the Treasury, still remains in place.
Today, FinCEN issued the following guidance, “in light of the recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
Accordingly pursuant to FinCEN’s notice as of today, January 24, 2025, this means that reporting requirements under the Corporate Transparency Act continue to be paused for corporations including applicable nonprofit homeowner and condominium associations.
FinCEN states on its website as follows:
On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
NowackHoward continues to closely monitor the litigation and legislation involving the Corporate Transparency Act. The Community Associations Institute also continues to track the various CTA litigation. Visit CAI’s Corporate Transparent Act webpage for ongoing updates and advocacy efforts and opportunities.
For our clients that requested NowackHoward assistance with their CTA filing, we will be reaching out over the next few weeks to confirm that you would like us to process your report. If your Association has not yet filed its report and would like our assistance, please email CTA@nowackhoward.com. You can also file your Association’s report directly with FinCEN through the BOI FinCEN Portal.
