Good news! While the Supreme Court yesterday sided with the federal government in striking down an injunction against the Corporate Transparency Act, FinCEN quickly stepped in with an announcement that the filing requirements remain on hold so long as a second ruling remains in place. Here’s the notice currently posted on FinCEN’s website:

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.

As a reminder, yesterday’s SCOTUS decision addressed whether the nationwide injunction against the CTA could remain in place pending the outcome of an appeal in the Fifth Circuit. Here’s how the litigants in the first Texas case described the situation after news of that ruling:

Although the Court’s decision lifts the injunction blocking the enforcement of the CTA in this case, FinCEN is still barred from enforcing the law under a second order issued in January. That second order is not automatically lifted by today’s decision. The ball is now in the Trump administration’s court to extend or stay the filing deadline and protect millions of neighborhood associations, small businesses, and community organizations from the CTA’s unjustified burden, prevent them from incurring billions of dollars in compliance costs, and give Congress the time it needs to reconsider this mistaken policy.

But as the Wall Street Journal points out, a separate ruling issued earlier this month also blocks enforcement of the FinCEN rules, including the January 1 filing deadline:

A nationwide order issued on Jan. 7 by Judge Jeremy Kernodle, also of the Eastern District of Texas, in a separate case challenging the CTA apparently remains in place. That order continues to block the implementation and enforcement of the CTA nationwide. The court docket in the case doesn’t show an appeal by the government. 

…“Our position is that our injunction is still in effect,” said Chance Weldon, a lawyer for plaintiffs in the case. Weldon said the government is still within the window to appeal.

And last, the Journal of Accountancy:

However, the Texas Public Policy Foundation (TPPF), which represented the plaintiffs in the second case, Samantha Smith and Robert Means vs. U.S. Department of Treasury, said in a news release Thursday that its case is not affected by the one in which the Supreme Court issued a stay.

“As the judge who issued the order emphasized, TPPF’s case is based on different facts and arguments from the one in front of the Supreme Court,” the release said. In that case, the judge cited 5 U.S. Code Sec. 705, relief pending review, which says a reviewing court “may issue all necessary and appropriate process to postpone the effective date of an agency action to preserve status or rights.”

…”There is still a BOI injunction in place,” Melanie Lauridsen, the AICPA’s vice president–Tax Policy & Advocacy, said in a LinkedIn post.

So while today’s announcement from FinCEN provides some much-needed relief, it’s safe to say confusion still reigns among the Main Street business community, which woke up to the following headlines:

  • Washington Post: Supreme Court Clears Ways for Corporate Transparency Law to Take Effect
  • Courthouse News Service: Supreme Court lifts pause on Corporate Transparency Act
  • Bloomberg Law: Supreme Court Allows Corporate Transparency Act Enforcement
  • HBS Dealer: The Beneficial Ownership Information rule is back

The new Trump administration has an opportunity to put the CTA’s filing requirements on hold for good and give Main Street the certainty it needs. One of two possible next steps should do the trick:

  • Issue an EO or other statement officially delaying the filing deadline to the end of the year to give businesses certainty and the courts time to work through all the arguments; and/or
  • Formally announce it will continue to not challenge the second ruling, leaving that decision intact and the CTA filing requirements on hold.

We know many key members of the Trump administration (including Vice President JD Vance and former SBA Administrator Linda McMahon) already oppose the CTA and its onerous data grab. Yesterday’s court ruling gives them a chance to put that opposition into action.  Let’s hope they’re paying attention.