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FinCEN Commits to Extend CTA Reporting for 30 Days If Court Grants Stay of Injunction

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On February 5, 2025, the United States filed a motion in the case of Samantha Smith, et al., v. United States Department of Treasury, et al., to stay the order of the Federal District Court for the Eastern District of Texas, Tyler Division, preliminarily enjoining the enforcement of the Corporate Transparency Act (CTA) on a nationwide basis.

Background

On January 7, 2025, the District Court in the Samantha Smith case preliminarily enjoined the government from enforcement of the CTA against the named plaintiffs and stayed the effective date of the final regulations on a nationwide basis. The United States filed its notice of appeal and its motion to stay the preliminary injunction on February 5, 2025.

FinCEN’s Commitment 

In its motion, the United States made the following commitment:

As a matter of policy, Treasury continues to assess the potential burden of the Final Rule. If this Court grants the stay, FinCEN intends to announce that it will extend the compliance deadline for thirty days. During that period, FinCEN intends to assess its potential options to prioritize reporting for those entities that pose the most significant national security risks while providing relief to lower-risk entities and, if warranted, amending the Final Rule.

Samantha Smith is one of a number of cases around the country challenging the constitutionality of the CTA. As previously reported, the Supreme Court granted the government’s motion to stay the nationwide injunction issued by the District Court in Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland. That decision by the Supreme Court did not lift the nationwide injunction imposed by the District Court in the Samantha Smith case. In response to the Supreme Court’s decision, FinCEN issued a statement that reporting companies are not currently required to file Beneficial Ownership Information (BOI) reports.

Stay tuned as we monitor this topic.

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