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Update: Corporate Transparency Act (“CTA”) Reporting Appears to Remain On Hold

wbricker

CTA reporting may remain voluntary for now notwithstanding the Supreme Court’s recent stay [604 U.S. ___  (2025)] of the nationwide injunction issued by a federal District Court judge in the Eastern District of Texas and ultimately affirmed by the Fifth Circuit Court of Appeals. CTA reporting may continue to be voluntary due to a second federal District Court judge in the Eastern District of Texas on January 7, 2025, ordering a separate nationwide injunction in the case of Samantha Smith v. the U.S. Department of the Treasury.

 

Today, January 24, 2025, the Department of the Treasury Financial Crimes Enforcement Network (“FinCEN”) posted an alert stating that reporting companies are (i) currently not required to file beneficial ownership reports, (ii) that reporting companies are not subject to liability if they fail to do so while the order remains in force and (iii) that reporting companies may continue to voluntarily submit ownership information.

 

We expect more guidance from FinCEN and developments in the coming days.

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