The case
On 23 January 2025, the United State Supreme Court issued an 8-1 opinion staying the original injunction issued by the US Federal District Court in the Eastern District of Texas on 3 December 2024. Accordingly, the deadlines for disclosure of Beneficial Owner Information to FinCEN were reactivated. This decision ends the zig-zag string of appeals concerning this injunction, but not the question of the constitutionality of the Corporate Transparency Act.
Source: Paul Millen
The commentary
There may be several rounds left in this dispute. FinCEN has not yet issued an updated notification following the Supreme Court decision. FinCEN likely will opt to further postpone the registration deadline for pre-existing Reporting Companies (i.e. those in existence prior to 1 January 2024). At a minimum, we should expect a grace period, akin to the one granted on 23 December after the US Court of Appeals for the Fifth Circuit initially lifted the nationwide injunction against the Corporate Transparency Act. At that time, FinCEN opted to extend the deadlines from 1 January to 13 January 2025. However, we may see a longer delay under the new administration. Stay tuned.
Please contact Paul if you have any questions on the above.