Uncertainty Surrounds Enforcement of Corporate Transparency Act Despite Supreme Court Decision

After much back-and-forth, on Thursday, January 23, 2025, the U.S. Supreme Court granted the federal government’s request to enforce the Corporate Transparency Act (CTA) while an appeal is pending before the U.S. Court of Appeals for the 5th Circuit. This decision stayed a prior ruling in Texas that had blocked the nationwide enforcement of the CTA.

Following the Supreme Court's decision, the Financial Crimes Enforcement Network (FinCEN) issued updated guidance clarifying that reporting requirements are still on hold: (See the story). Given that a separate nationwide injunction from another federal court judge in Texas remains in effect, reporting companies are not currently required to submit Beneficial Ownership Information (BOI) to FinCEN. That said, reporting companies may voluntarily file their BOI reports if they choose to do so.

While enforcement remains uncertain, companies should take steps to prepare. Failure to report could result in steep daily fines of $606 per day. Therefore, to mitigate this risk, companies are strongly encouraged to have their BOI information ready for submission should reporting requirements be reinstated. For companies with principal places of business in certain Florida counties, that had original reporting deadlines between October 4, 2024, and January 2, 2025, the reporting requirements have been extended by six months as part of hurricane relief efforts. Link to Hurricane Relief. Please note, however, that this extension does not apply to any newly formed entities. 

We are closely monitoring developments and will provide updates as it evolves. For assistance or guidance regarding compliance with the Corporate Transparency Act, please reach out to your Tripp Scott, P.A. attorney or email us at corporatefilings@trippscott.com.