On Jan. 23, 2025, the Supreme Court granted the government's motion to stay a nationwide injunction of the Corporate Transparency Act (CTA) issued by a federal judge in the case of Texas Top Cop Shop, Inc. v. McHenry — formerly, Texas Top Cop Shop v. Garland.
However, a separate nationwide injunction issued on Jan. 7, 2025, by a different federal judge in Texas in the case of Smith v. U.S. Department of the Treasury remains in place despite the Supreme Court ruling in Top Cop Shop. Therefore, as of now, the CTA remains legally enjoined and reporting companies are not currently required to file beneficial ownerships information with FinCEN and are not subject to liability if they fail to do so while the order remains in force.
Taft continues to monitor these cases and all other related litigation and their implications on the future of the CTA and will provide additional alerts as information becomes available.
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