Despite the Supreme Court’s January 23, 2025, decision to stay the Texas Top Cop Shop, Inc. v. McHenry (previously Garland but updated due to the change in administration) nationwide injunction, FinCen will not yet enforce the Corporate Transparency Act’s (“CTA”) filing requirements.
There is a second nationwide injunction in Smith et al v. Dept. of the Treasury,issued in January, also pending in a Texas District Court. At the time of issuance, the Smith injunction was not meaningful as the Texas Top Cop Shop injunction remained in full force and effect. Yesterday’s staying of the Texas Top Cop Shop injunction now puts the Smith injunction in the limelight.
It is unclear if the Smith injunction will meet the same fate as the Texas Top Cop Shop injunction. The underlying facts and circumstances of Smith differ from those of Texas Top Cop Shop, and, if you have been following along with the CTA news, anything can happen.
FinCen will continue to accept voluntary filings during the pendency of the Smith injunction. Companies may continue taking a wait-and-see approach or they may choose to make voluntary filings. If a wait-and-see approach is taken, it may be prudent to begin or complete analyses of who may be considered a company’s beneficial owner.
As always, we will continue to keep you apprised of the next episode of As the CTA World Turns.
If you have any questions, do not hesitate to contact a member of our Corporate & Business team.
Stephanie E. Cummings
Partner
scummings@carmodylaw.com
203.575.2649
Matthew H. Gaul
Partner
mgaul@carmodylaw.com
203.784.3106
This information is for educational purposes only to provide general information and a general understanding of the law. It does not constitute legal advice and does not establish any attorney-client relationship.