On January 23, 2025 the Supreme Court of the United States (SCOTUS) ruled that the injunction issued in the Texas Top Cop Shop case (see our prior post about that injunction here) was stayed, meaning that the nationwide injunction in that case is no longer in effect. However, prior to that decision, another Texas Federal District Court Case, Smith v. Department of the Treasury, issued another nationwide injunction on January 7, 2025. Accordingly, on January 23rd, the Financial Crimes Enforcement Network (FinCEN) issued a formal statement that it will abide by the Smith case injunction issued on January 7, 2025 and not require that the Beneficial Ownership Information Reports (BOIR) be filed at this time while the Smith case injunction remains in effect, regardless of the SCOTUS decision in the Texas Top Cop Shop case.
In other words, an injunction is still in place, and any filing of the BOIR is currently VOLUNTARY. Although there is no legal requirement to file the BOIR currently, the filing requirements could be reinstated at any time, and if the filing deadline is not also extended either by the Court or by FinCEN, corporate entities that wait to file may face penalties for having failed to file timely. Each corporate entity will need to decide for itself how to proceed and must keep itself apprised of developments that may affect their filing requirements. There are multiple cases in the courts currently that could affect corporate entities’ filing and reporting requirements under CTA, so this is a fluid and evolving situation.
The above is provided as a courtesy for general informational purposes only and does not constitute legal advice. If your Association or other entity would like our assistance in deciding how to proceed, please contact us so we can provide legal advice specific to your situation.