Yesterday’s District Court decision lifting the injunction against the Corporate Transparency Act (CTA) is a setback for Main Street.

The Texas court lifted the second and only remaining injunction blocking filing under the CTA, again forcing millions of small (and not-so-small) businesses to report all their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) or face fines and jail time. As the Court ruled:

In light of the Supreme Court’s order in McHenry v. Texas Top Cop Shop, Inc., the Court has determined that the motion should be, and hereby is, GRANTED. The Court’s January 7, 2025 order granting …

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Notable Developments

• Smith ruling appealed
• FinCEN promises relief amid shifting legal landscape
• NFIB files amicus brief
• Delay bill sails through House

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Smith Ruling Appealed

On February 5, the DOJ filed a notice of appeal of a District Court’s ruling in Smith v Treasury, the case that led FinCEN last month to once again pause data collection under the CTA. However, the government also asked the appellate court to stay the nationwide injunction against the CTA’s reporting requirements pending a ruling in the case, meaning the current pause could be undone by the courts at any point.

Main Street businesses had hoped …

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Over 120 trade associations today called on the Treasury Department to offer Main Street some relief and certainty by delaying the CTA through at least the end of this year. As the letter sent to Secretary Scott Bessent reads:

Despite massive public awareness campaigns by the groups represented here, as of December 1, 2024 – just one month before a year-end deadline – FinCEN had received less than 30 percent of the required filings. Had the courts not intervened, tens of millions of business owners would have been out of compliance and at risk of felony prosecutions. 

The myriad of …

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Notable Developments

• FinCEN halts CTA enforcement
• S-Corp Advisor in the WSJ
• Our Latest Podcast with CIR Litigation Director
• Delay Bill Reintroduced

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FinCEN Halts CTA Enforcement (Despite SCOTUS Ruling)

Last Friday the Financial Crimes Enforcement Network announced that businesses and covered entities are still not obligated to file under the CTA, so long as the ruling in Smith v. Treasury remains in place. Here’s the alert:

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 …

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