Insights

Here We Go Again – US Supreme Court lifts the BOI Stay; Still on Hold

January 27, 2025

Written by James Sanders

Last Thursday, the US Supreme Court lifted the pause on the CTA’s BOI reporting requirement.  In issuing this decision, the Supreme Court only lifted the universal stay and gave no reasoning behind it.   However, there is still another case that has a nationwide injunction in place.  Are you confused whether to file or not?  Well, FinCen issued the following guidance as to filing. 

In light of a 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.

****

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.

If you have further questions, our suggestion is to talk with your professional business advisors in the interim.    

We also have an information page for your reference if you would like to learn more. 

Share: