Many of you may have already seen the headlines about the Supreme Court’s decision yesterday that struck down an injunction against the Corporate Transparency Act. Despite that announcement, businesses are NOT required to submit beneficial ownership information right now.
FinCEN, the agency responsible for implementing the rule made an announcement shortly after the Supreme Court’s decision that filing requirements remain on hold so long as another federal court’s ruling remains in place. Here is the notice that was posted on FinCEN’s website:
“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.”
Legislation has been introduced in the new Congress to repeal the statute, and the new administration has made it known they do not support the CTA. Other litigation is also pending besides the case mentioned in the FinCEN notice. Bottom line, dealers are not required to file BOI reports at the moment.
We will keep you updated on what is sure to be another development on this issue in the coming weeks. If you have any questions, please contact your association office.
