Corporate Transparency Act Appeal: DOJ Challenges Injunction

DOJ Appeals Texas Court’s Injunction on the Corporate Transparency Act

The U.S. Department of Justice (DOJ) has officially filed an appeal in Smith v. Department of the Treasury, challenging the Texas district court’s injunction against the Corporate Transparency Act (CTA). This Corporate Transparency Act appeal is now before the Fifth Circuit Court of Appeals, reinforcing the government’s position that the CTA remains constitutional and enforceable.

With BOI reporting deadlines approaching, businesses must stay informed and be prepared for compliance, regardless of ongoing litigation.

Key Deadlines in the Corporate Transparency Act Appeal

While the Smith v. Department of the Treasury appeal moves forward, another major Corporate Transparency Act case—Texas Top Cop Shop, LLC v. U.S. Department of the Treasury—is also pending. The briefing schedule is as follows:

• Appellants’ (government) brief: Due February 7, 2025
• Appellees’ (plaintiffs) brief: Due February 21, 2025
• Appellants’ reply brief: Due February 28, 2025
• Oral arguments: Scheduled for March 25, 2025

Businesses should closely follow these legal proceedings, as any ruling could impact compliance requirements.

Government Seeks to Reinstate the Corporate Transparency Act

On February 5, 2025, the government filed a motion for stay pending appeal in Smith v. Department of the Treasury. If granted, this motion would temporarily lift the Texas district court’s preliminary injunction, allowing BOI reporting requirements to be enforced while the appeal is being decided.

This action underscores the DOJ’s commitment to defending the Corporate Transparency Act, reinforcing that businesses should not assume the law will be overturned.

FinCEN’s 30-Day Compliance Window if the Injunction Is Lifted

FinCEN has confirmed that businesses will have only 30 days to comply if the injunction is lifted. If the courts reinstate BOI reporting requirements, businesses must submit filings within one month before enforcement resumes.

With such a short timeframe, business owners should begin preparing now rather than waiting until compliance is mandatory again.

What Businesses Should Do to Prepare for BOI Compliance

Regardless of ongoing litigation, BOI reporting remains a federal requirement under the Corporate Transparency Act. Businesses can still voluntarily file BOI reports with FinCEN, ensuring compliance ahead of potential deadlines.

Steps to Prepare for Compliance:

• Identify beneficial owners and collect the required information.
• Review FinCEN’s BOI reporting guidelines for up-to-date requirements.
• Consider using FileForms’ BOI reporting solutions for a streamlined filing process.

➡️ Need assistance with your BOI filing? Contact us today.

Stay Updated on the Corporate Transparency Act Appeal

With multiple Corporate Transparency Act cases in progress, it is critical for business owners, accountants, and legal professionals to stay informed. Subscribe to updates for the latest developments on CTA compliance, BOI reporting, and FinCEN enforcement.