On January 23, 2025, the Supreme Court approved the government’s request to pause a
nationwide injunction imposed by a federal judge in Texas in the case of Texas Top Cop Shop,
Inc. v. McHenry (formerly Texas Top Cop Shop v. Garland). This is yet another development in
the ongoing litigation that repeatedly suspends and resumes enforcement of this law. As of
now, businesses are still not required to report beneficial ownership information because of a
separate nationwide injunction issued by another federal judge in Texas, in Smith v. U.S.
Department of the Treasury remains active. This means reporting companies are not currently
obligated to file beneficial ownership information with FinCEN and will not face liability for
failing to do so while the Smith order is in effect. Nevertheless, businesses retain the option to
voluntarily submit beneficial ownership reports if they wish.
We will continue to monitor the situation and update you as more information becomes
available.
Please note that this alert is for informational purposes only and does not constitute legal
advice.