Corporate Transparency Act Compliance: Supreme Court Reinstates the Law

Update: Beneficial Ownership Information (BOI) Filing Now Voluntary Due to New Court Order

January 24, 2025 Update:

A new federal court ruling has temporarily halted the Corporate Transparency Act (CTA) beneficial ownership reporting (BOI) requirements.

According to an official statement from FinCEN:

“In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”

To read the official statement, visit FinCEN’s reporting page.

This ruling stems from the case Smith v. U.S. Department of the Treasury, which remains in effect despite the Supreme Court’s decision to lift a separate injunction in Texas Top Cop Shop, Inc. v. McHenry.

What This Means for Businesses & Beneficial Owners

• BOI reporting is now voluntary until further notice.
• Businesses will not face penalties for failing to file while the Smith order is active.
• FinCEN continues to accept voluntary filings for businesses that choose to comply early.

It’s critical to stay updated as this legal situation develops. FileForms will continue to monitor changes and provide updates as they arise.

What Businesses Need to Know

On January 23, 2025, the U.S. Supreme Court granted the government’s motion to stay a nationwide injunction that had temporarily halted enforcement of the Corporate Transparency Act (CTA). While this initially reinstated BOI reporting requirements, the separate Smith ruling has effectively paused compliance obligations again.

What is the Corporate Transparency Act and BOI Compliance?

The Corporate Transparency Act, passed in 2021, requires certain U.S. businesses to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) to help prevent financial crimes like money laundering, tax evasion, and fraud.

Learn more about state compliance requirements here.

BOI Filing Requirements

Who Must File a BOI Report?

If compliance resumes, LLCs, corporations, and other small businesses may be required to report their beneficial owners—individuals who own or control at least 25 percent of the company.

Who is Exempt?

• Large operating companies
• Publicly traded businesses
• Certain regulated entities

Legal Challenges and the Supreme Court Decision

In December 2024, a federal court in Texas issued an injunction blocking the Corporate Transparency Act, citing concerns about privacy and compliance burdens on small businesses.

However, the U.S. Department of Justice (DOJ) filed an “Emergency Motion for Stay Pending Appeal” in the Fifth Circuit, leading to the Supreme Court’s January 2025 ruling, which reinstated the law—only for compliance to be halted again by the Smith ruling.

Key Takeaways from the Supreme Court Ruling

• Initially, the Supreme Court’s decision reinstated BOI reporting requirements.
• Now, a separate federal court ruling (Smith v. U.S. Department of the Treasury) has paused compliance.
• FinCEN has confirmed that BOI filings are voluntary while this ruling remains in place.

Corporate Transparency Act Compliance: What Businesses Need to Do Now

While BOI reporting is currently voluntary, businesses should still be prepared in case the compliance requirements are reinstated.

BOI Reporting Requirements (If Compliance Resumes)

• New entities (formed after January 1, 2025) would be required to file within 30 days of formation.
• Existing businesses (formed before 2025) would need to follow FinCEN’s deadlines.

Penalties for Non-Compliance (If Enforcement Resumes)

• Fines up to $606 per day
• Potential criminal charges

How to Prepare for Corporate Transparency Act Compliance

Although filings are voluntary for now, businesses can take the following steps to be ready:

• Identify beneficial owners – Determine who owns or controls 25 percent or more of the company.
• Gather required information – Collect names, addresses, and government-issued IDs.
• Monitor legal updates – Stay informed about any changes to BOI filing requirements.

Why BOI Reporting and CTA Compliance Still Matter

Even though BOI filing is currently voluntary, businesses should still consider submitting reports to stay ahead of compliance in case the law is reinstated.

FileForms provides a fast and accurate filing solution, whether businesses choose to file now or wait for further updates.

Final Thoughts on Corporate Transparency Act Compliance

The Supreme Court’s decision and the Smith ruling have created uncertainty around BOI reporting requirements. For now, filing remains voluntary, but businesses should continue to monitor legal updates and prepare for potential enforcement in the future.

For expert guidance and an easy, reliable filing process, visit FileForms today.