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On January 7th, 2025 An injunction was put in place by Smith v. U.S. Department of the Treasury. 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). The Supreme Court decision addresses only the nationwide preliminary injunction issued by the Eastern District of Texas, not the underlying case, which continues on appeal in the Fifth Circuit. Oral arguments for the appeal are still scheduled for March 25, 2025. 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. |
According to FinCEN, “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”.
Reporting companies may continue to voluntarily submit beneficial ownership information reports, but are not required to at this point. At this time beneficial ownership information reports are not mandatory.
This page does not constitute legal advice or providing legal services. This page is merely a general announcement of a new regulation. Nothing contained within this page constitutes a lawyer client relationship between Kemp Klein Law Firm and the reader. The implementation of the Corporate Transparency Act is still in development. Further, a variety of other federal and state laws and regulations may apply to your particular business activities. You may contact your legal counsel if you have specific questions.
For further information on these developments and their impact on the CTA click here. Make sure to check out the Legislative Updates section of kkue.com for Important Information and insight on major new legal developments.
Please contact your Kemp Klein Law Firm Attorney or email us at [email protected] if you have any additional questions regarding your company’s reporting obligations or to discuss the process of compliance. Standard Billing Rates will apply.
