Yesterday, the Supreme Court granted the government's motion
to remove the District Court's injunction in McHenry v. Texas
Top Cop Shop that paused compliance with the Corporate Transparency
Act ("CTA"). However, compliance with the CTA is still
paused by an order in Smith v. U.S. Dept of the Treasury, a
separate challenge to the validity of the CTA pending in the
Eastern District of Texas. On January 7, 2025, the District Court
in the Smith case stayed the compliance deadlines in the Treasury
Department's regulations implementing the CTA.
Today, the Financial Crimes Enforcement Network
("FinCEN") has provided guidance stating that the
compliance stay issued in the Smith case remains in effect and that
reporting companies will not be subject to fines if they do not
comply with the CTA during the stay. FinCEN continues to accept
beneficial ownership reports on a voluntary basis, so any company
concerned with being able to complete its compliance obligations in
a
