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On Jan. 23, the U.S. Supreme Court stayed a district court’s nationwide injunction against the Corporate Transparency Act’s Beneficial Ownership Information reporting requirements, following the U.S. Department of Justice’s request. The nationwide injunction had blocked enforcement of the CTA’s BOI reporting requirements.  

However, according to the Financial Crimes Enforcement Network’s website, a separate national injunction issued earlier this month by a different federal judge still remains in place, and thus reporting companies are not currently required to file BOI with the FinCen despite the Supreme Court’s action.

Specifically, as of Jan. 24, the FinCen website states, “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.”

Previously, on Dec. 26, 2024, a panel of the U.S. Court of Appeals for the 5th Circuit Court had reinstated the district court’s nationwide preliminary injunction against the CTA’s BOI reporting requirements. ABC applauded the reinstatement of the nationwide preliminary injunction, which provided small businesses with necessary relief while litigation continued.

“The back-and-forth rulings and legal challenges to the reporting requirements on top of the significant compliance challenges for small businesses places unnecessary burdens on the construction industry, particularly small contractors and subcontractors that form the backbone of this industry,” said Kristen Swearingen, ABC vice president of legislative and political affairs. 

Meanwhile, Congress has an opportunity to act by passing the ABC-supported Repealing Big Brother Overreach Act, legislation that would repeal the CTA.

ABC remains committed to advocating for regulatory clarity and fairness for its members. As further guidance emerges from FinCen, ABC will work to inform members on their obligations and continue to support efforts to overturn these burdensome regulations.

ABC members are encouraged to contact counsel with any questions about the recent court actions.

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