Corporate Transparency Act Update: Nationwide Injunction Still in Place – No BOI Filings Required for Now

In a significant update regarding the enforcement of the Corporate Transparency Act (CTA), the Financial Crimes Enforcement Network (FinCEN) has confirmed that companies are not required to file Beneficial Ownership Information (BOI) reports at this time due to an outstanding nationwide injunction. However, reporting companies may continue to voluntarily submit BOI reports.

The CTA, which mandates businesses to report beneficial ownership details to FinCEN to combat illicit financial activities, has faced multiple legal challenges. One such case, Smith v. U.S. Department of the Treasury, resulted in a nationwide injunction that remains in place, effectively halting the enforcement of the BOI reporting requirements.

Previously, on January 23, 2025, the U.S. Supreme Court had lifted a separate nationwide injunction in Texas Top Cop Shop, Inc. v. McHenry, leading many businesses to believe that they must comply with the CTA’s reporting obligations. However, due to the continuing injunction in Smith, FinCEN has clarified that entities are not currently required to submit their BOI reports.

For businesses, this means:

  • Companies that fall under the CTA’s reporting requirements do not need to file BOI reports at this time.
  • The enforcement status of the CTA remains uncertain as litigation progresses.
  • Businesses should stay informed and be prepared to comply swiftly if the injunction is lifted.

The legal battle over the CTA’s constitutionality continues, and the ultimate decision from the courts could significantly impact the law’s future. FinCEN may issue further guidance as the litigation unfolds.

If you have questions about the CTA or need assistance in preparing for potential future reporting obligations, contact your legal counsel at Weintraub Tobin.