You may have read news that yesterday the Supreme Court granted the Department of Justice’s request to allow BOI reporting enforcement while the Texas Top Cop Shop court case imposing a nationwide reporting pause is ongoing. While that is true, a separate nationwide CTA/BOI reporting injunction is still in place from a different Texas case.

FinCEN provided the following updated message on their website in response:

In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

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 are also 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.

It remains advisable to continue the information gathering process, especially for complex situations, in the event there is yet another abrupt reversal. More information on BOI reporting can be found HERE.

Please reach out to a RubinBrown professional with any questions or concerns related to this development.

 

Published: 01/24/2025

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