The U.S. Supreme Court has granted a stay of the nationwide injunction of the Corporate Transparency Act (CTA) requested by the federal government in the Texas Cop Shop matter. The ruling was issued Jan. 23.
A separate nationwide injunction issued by a different federal judge in Texas (Smith vs. U.S. Department of the Treasury) remains in place.
As a result, 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 despite the Supreme Court’s action. Reporting companies may continue to voluntarily submit beneficial ownership information reports.
We continue to follow developments surrounding the CTA and will provide updates as new guidance becomes available. Be sure to monitor the CSC blog for additional updates.
