On February 18, 2025, the last remaining nationwide preliminary injunction of the Corporate Transparency Act (“CTA”) issued by a federal judge in the U.S. Federal District Court for the Eastern District of Texas in Smith v. U.S. Department of the Treasury (“Smith”) was lifted. Numerous cases have challenged the legality and enforcement of the CTA, and several courts (including the court in Smith) had issued injunctions preventing its enforcement. Many of these cases are still pending, however all injunctions barring enforcement have now been lifted.
Following the Smith ruling the Financial Crimes Enforcement Network (FinCEN) issued a notice confirming the resumption of reporting requirements under the CTA. FinCEN has set March 21, 2025, as the filing deadline for the vast majority of nonexempt companies — i.e., those formed before 2024, during 2024 and in 2025. Please review FinCEN's CTA landing page for the latest. This will apply to most companies that do not qualify for the specific exemptions to the CTA and have not yet complied with the reporting requirements.
Despite the continuing court challenges and potential congressional action to repeal or amend the CTA, our guidance is that nonexempt companies that have not yet made CTA filings should do so promptly.
For more information and further assistance with CTA compliance and reporting, please contact one of the Viridian professionals below:
