BOI Reporting Remains Voluntary
On Thursday, January 23, the Supreme Court lifted a previous injunction on the Corporate Transparency Act (CTA). However, due to a separate nationwide injunction still in effect, the Financial Crimes Enforcement Network (FinCEN) issued a statement on Friday, January 24, clarifying that companies subject to the CTA are not required to file Beneficial Ownership Information (BOI) reports or face penalties while the nationwide injunction remains in place. FinCEN also noted that reporting companies may continue to voluntarily submit BOI reports during this time.
BOI Court Cases
- Texas Top Cop Shop, Inc. v. Garland, No. 4:24-CV-478 (E.D. Texas 12/3/24).
- Samantha Smith and Robert Means v. U.S. Department of the Treasury, No. 6:24-CV-336 (E.D. Texas 1/7/2025).
Key Developments
Supreme Court Decision (Jan. 23):
- Justice Samuel Alito granted the federal government’s request to lift a December 5 Texas federal court injunction that blocked the CTA.
- However, this ruling does not override a second injunction issued on January 7 in a separate but similar case, which continues to block enforcement of the CTA nationwide.
Current Situation:
- Despite the Supreme Court’s decision, the January 7 injunction keeps the BOI reporting requirements unenforceable.
- Small businesses remain exempt from mandatory BOI reporting until further action is taken.
Timeline of Events
- Dec. 3, 2024: A Texas federal district court blocks BOI reporting, citing constitutional concerns with the CTA.
- Late December: The Fifth Circuit motions panel briefly reversed the injunction, but a merits panel reinstated it just before the January 1 reporting deadline.
- Jan. 7, 2025: A federal district court issues a separate injunction in a similar case, creating further uncertainty.
- Jan. 23, 2025: Justice Alito lifts the Dec. 5 injunction, but the Jan. 7 injunction remains in effect, keeping BOI reporting voluntary for now.
What’s Next
- Fifth Circuit Appeal: Oral arguments on the injunction’s constitutionality are scheduled for March 25, with a decision expected soon after. The Fifth Circuit could lift the injunction, complicating the situation for small-business owners.
- Legislative Action: On January 15, Sen. Tommy Tuberville (R-Ala.) and Rep. Warren Davidson (R-Ohio) reintroduced the Repealing Big Brother Overreach Act to repeal the CTA entirely.
We will continue to monitor the situation and provide updates as they are made.
2025