On January 23, 2025, the U.S. Supreme Court lifted a nationwide injunction that had blocked enforcement of the Corporate Transparency Act (CTA) since December 3, 2024. The CTA requires many small businesses to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) as part of an anti-money laundering initiative.

However, despite the Supreme Court’s action, a separate nationwide injunction issued on January 7, 2025, in a different Texas case remains in effect. This injunction blocks the government from enforcing BOI reporting requirements for the time being, keeping reporting companies off the hook for mandatory compliance. Businesses that fail to file BOI reports during this period face no liability.

Key Details of the Supreme Court Decision

• The Court ruled in favor of the government’s request to stay the earlier injunction, allowing the CTA’s enforcement to proceed in theory.
• Justice Samuel Alito issued the order, while Justice Neil Gorsuch concurred but expressed interest in resolving broader questions about universal injunctions. Justice Ketanji Brown Jackson dissented, arguing that no emergency relief was warranted given the expedited nature of appeals already underway.
• The Fifth Circuit Court will hear oral arguments in the Texas cases challenging the CTA on March 25, 2025, with a final resolution expected afterward.

What This Means for Businesses

For now, BOI reporting remains voluntary. Businesses are not required to file reports with FinCEN and cannot be penalized for non-compliance while the Jan. 7 injunction is in place. However, the situation could change if courts lift the remaining injunction or if Congress acts.

Recommendations for Businesses

• Stay Prepared: Gather necessary BOI data (legal names, birthdates, addresses, and ID documents) to file promptly if required.
• Monitor Updates: Follow FinCEN announcements and legal developments closely.
• File Voluntarily: You can still file now if you’d like to, but you are not required to at this time. 

While uncertainty persists, small businesses should remain vigilant and informed. Visit FinCEN.gov for updates.