CGA Law News & Blog

Enforcement Of The Corporate Transparency Act Still On Hold

access_time Posted on: January 24th, 2025

Recent activity regarding the Corporate Transparency Act has resulted in no change in its enforcement. The United States Supreme Court issued a decision on January 23, 2025, lifting a nationwide stay on the enforcement of the Corporate Transparency Act. This decision comes after a roller-coaster of events in December over the scope of the stay issued in Texas Top Cop Shop, Inc. v. McHenry. Regardless of the Supreme Court’s decision, the enforcement of the Corporate Transparency Act is still being halted. Currently, reporting companies are not required to file their Beneficial Ownership Information but may voluntarily report.

Summary of Events

On December 3, 2024, the Judge in Texas Top Cop Shop issued an injunction that halted the enforcement of the Corporate Transparency Act. On December 23, 2024, the Fifth Circuit held an emergency hearing; it granted the Federal Government’s request to lift the halt on the Corporate Transparency Act. Then, on December 26, 2024, the Fifth Circuit judges held a hearing and vacated the Federal Government’s request to lift the halt on the Corporate Transparency Act. On December 31, 2024, the Federal Government requested the Supreme Court to lift the stay and allow enforcement. On Thursday, January 23, 2025, the Supreme Court granted the Federal Government’s request.

The Supreme Court decision may lead some to believe that reporting companies must now comply with the Corporate Transparency Act. However, on January 7, 2025, a federal Judge issued a nationwide stay in Smith v. U.S. Department of the Treasury against enforcement of the Corporate Transparency Act. The January 23rd Supreme Court decision affects the stay issued in the Texas Top Cop Shop case but does not affect the stay issued in the Smith case. The Federal Government has time to file a request with the Supreme Court to lift the stay in the Smith case, which may result in the Supreme Court lifting the stay.

Summer M. Pannizzo

Attorney

Summer Pannizzo is a member of the business, estate planning, and real estate practice groups. She brings a unique perspective to her legal work, drawing from her personal experiences in the restaurant industry and demonstrating a commitment to personable, high-quality client service.

Learn more about Summer here.