Search for:
AML & Financial Services Regulatory

US Supreme Court lifts injunction on Corporate Transparency Act, reporting requirements still on hold

By , and 1 Min Read

Tax News and Developments January 2025

In brief

On January 23, 2025, the US Supreme Court granted the US government’s application to end the nationwide preliminary injunction against enforcement of the Corporate Transparency Act (CTA) issued by the District Court in Top Cop Shop on December 3, 2024. This injunction is currently on appeal with the Fifth Circuit. However, a separate nationwide order that also stayed the CTA beneficial owner reporting deadline remains in place. This order was issued by a different federal judge in Smith v. US on January 7, 2025.

Key takeaways

There continues to be no requirement for reporting companies to file beneficial ownership information reports with FinCEN, notwithstanding the Supreme Court’s January 23, 2025, order in Texas Top Cop Shop. This was confirmed on January 24, 2025, by a posting of FinCEN on its website: Beneficial Ownership Information Reporting | FinCEN.gov. This posting also confirms that reporting companies are not subject to liability if they fail to file beneficial owner reports while the Smith v. US reporting stay remains in force.

We will continue to monitor the cases and report accordingly.

Categories:
Tags:
Author

Glenn G. Fox is a partner of Baker McKenzie's Wealth Management and Tax Practice Groups in New York and a member of the firm’s Global Tax Wealth Management Steering Committee. He is a domestic and international tax, estate planning, and tax-exempt (charitable) organizations lawyer with vast experience working with closely held businesses, families and charitable organizations from the US and overseas. Glenn is a member of the American College of Trust and Estate Counsel and of the Society of Trust and Estate Practitioners and has been recognized for fourteen consecutive years (2007-2020) as a "New York Super Lawyer" by the New York Times.

Author

Terry Gilroy is a partner in the New York office of Baker McKenzie and a member of the Compliance and Investigations Practice Group. Prior to joining the Firm in 2018, Terry served as Americas Head of the Financial Crime Legal function at Barclays. Terry advises businesses and individuals on white collar and financial crime issues and has significant experience conducting investigations relating to compliance with the US Foreign Corrupt Practices Act (FCPA) and related bribery and corruption statutes, economic sanctions regulations as administered by the US Department of the Treasury's Office of Foreign Assets Control (OFAC), and the Bank Secrecy Act and related anti-money laundering (AML) regulations and statutes. Terry spent six years on active duty in the United States Army as a Field Artillery officer.

Author

Justin Whittenburg is a partner in the Corporate and Securities Practice Group in the Houston office, having joined Baker McKenzie in 2003 as a summer associate. In the interim, Mr. Whittenburg spent four years as senior corporate and compliance counsel at a Houston-based leading global distributor of pipe, valve and fitting (PVF) products.
Mr. Whittenburg is currently a member of Baker McKenzie's North America steering committee for cross-border transactions and integrations. Prior to his life as a corporate lawyer, he was involved in project management for industrial construction projects in the petroleum and chemical industries.

Related Posts