On February 17, a federal judge in Texas lifted a preliminary injunction issued in Smith v. United States Department of the Treasury, removing the last legal hurdle to the enforcement of the Corporate Transparency Act ("CTA"). As a result, the CTA's reporting obligations are back in effect—at least temporarily.
As discussed in our last update, the Treasury Department moved to request a stay of the preliminary injunction based on the United States Supreme Court's decision in January 2025 to lift a stay in a separate, but parallel case in Texas Top Cop Shop, Inc. v. McHenry.
In its motion requesting the stay, the Treasury Department stated that the Financial Crimes Enforcement Network ("FinCEN") would extend the CTA filing deadline an additional thirty (30) days. During that period, the Treasury Department also signaled that FinCEN would reevaluate—and potentially modify—the CTA's reporting requirements for "low-risk entities" in order to prioritize enforcement for the most significant risks to U.S. national security.
FinCEN today issued a statement alerting reporting companies to a new deadline of March 21, 2025, which may be subject to further modification.
However, in light of this most recent decision, KMK recommends that companies that have not yet filed their beneficial ownership information begin preparations to do so by FinCEN's extended deadline. We will continue to monitor any applicable CTA deadlines and provide updates regarding any further changes to the CTA's reporting requirements.
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