By: Katherine A. Day, Esq. (kad@efclaw.com) and
Matti C. Tacy, Esq. (mct@efclaw.com)
Corporate Attorneys, Egan, Flanagan and Cohen, P.C.
On January 23, 2024, the Supreme Court of the United States granted the Department of Justice’s motion to stay the nationwide injunction issued by a U.S. District Court in Texas Top Cop Shop, Inc. v. McHenry. Although the Supreme Court’s order clears the way for FinCEN to enforce the Corporate Transparency Act’s (“CTA”) Beneficial Owner Information (“BOI”) reporting requirements with respect to the Texas Top Cop Shop injunction, there is a separate case, Smith v. U.S. Department of the Treasury, with its own nationwide injunction that continues to block enforcement.
For now, FinCEN’s reporting requirements remain on hold and reporting companies are not required to submit beneficial ownership information. FinCEN, however, continues to accept voluntary BOI reports from reporting companies while the nationwide injunction is in effect.
Reporting companies must continue to remain alert as the legal challenges to the CTA make their way through the courts. For additional information about the CTA’s legal rollercoaster over the past few months, please see our previous posts on the initial injunction and the Fifth Circuit’s orders leading up to the Supreme Court’s recent order.
Egan, Flanagan and Cohen’s corporate team continues to follow these ongoing cases and remains ready to assist with any CTA questions. Nothing in this legal update should be construed as legal advice. However, if you have any questions regarding the CTA or your business’ obligations, you can contact our team directly by contacting Attorney Kate Day, Esq. at kad@ecflaw.com or Attorney Matti Tacy, Esq. at mct@efclaw.com or by calling (413) 737-0260.
