A federal court has lifted its nationwide injunction on beneficial ownership information collection, citing a U.S. Supreme Court ruling in a separate case on the constitutionality of the Corporate Transparency Act.
The CTA requires covered businesses to report their BOI to the Financial Crimes Enforcement Network. Several parties have challenged the reporting requirements in different lawsuits. In January, the Supreme Court temporarily lifted an appeals court’s nationwide injunction against enforcement of the law in Texas Top Cop Shop vs. Garland. However, covered businesses were not required to report as a result of the Supreme Court order, because a separate nationwide injunction issued by the U.S. District Court for Eastern Texas in Smith v. U.S. Department of the Treasury remained in effect.
District Judge Jeremy Kernodle yesterday stayed the injunction in Smith, citing the Supreme Court’s decision in Texas Top Cop Shop. As a result, the CTA is no longer enjoined while the courts continue weighing the merits of the lawsuits.
FinCEN has not updated its website as of Tuesday afternoon and has not issued any revised deadlines. However, the House last week passed bipartisan legislation to extend the reporting deadline to Jan. 1, 2026. The bill, which has been endorsed by the American Bankers Association, now moves to the Senate.
