Corporate Transparency Act Update
The ongoing legal battle around the Corporate Transparency Act (CTA) has created some confusion for business owners. Here’s the latest update.
On January 23, 2025, the Supreme Court lifted an injunction (legal block) issued in a case known as Texas Top Cop Shop, Inc. v. Garland. This injunction had temporarily stopped the government from enforcing the CTA nationwide. However, another injunction from a separate case (Smith v. U.S. Department of the Treasury) is still in effect.
FinCEN is the bureau of the U.S. Department of the Treasury responsible for enforcing the CTA. According to FinCEN1:
- Businesses do not have to file beneficial ownership reports with FinCEN.
- Businesses will not face penalties for failing to file while the Smith order remains in place.
You can still voluntarily file your beneficial ownership information during this period. Please refer to www.fincen.gov for further details and for the most recent information on this matter.
It’s also important to know that the Supreme Court’s decision isn’t about whether the CTA is constitutional or not. It only dealt with whether the government could enforce the CTA while court cases challenging its constitutionality are ongoing. Things could change quickly. If the Smith injunction is lifted, the CTA could take effect again, and FinCEN will likely issue new filing deadlines.
We know this uncertainty can be frustrating. Rest assured, we’re keeping a close eye on these developments and will update you as soon as more information becomes available. In the meantime, we encourage you to consult with your Corient Wealth Advisor and your legal counsel to understand how this might affect your business and your planning.
1 https://www.fincen.gov/boi
ABOUT THE AUTHOR
John Schuman, JD, CFP®
John is a Partner, Head of Wealth Transfer at Corient, based in our Columbus, OH, office. Previously, he was a Partner, Co-CEO and President of legacy firm Budros, Ruhlin & Roe. As a CERTIFIED FINANCIAL PLANNER™ certificant, licensed attorney and former Certified Public Accountant (CPA), he adds an exceptional perspective to the firm. John’s expertise includes estate planning and taxation, income tax, general business and succession planning, and charitable and retirement planning. He has been a featured speaker at conferences of the Columbus Bar Association, the Financial Planning Association (FPA), the National Association of Personal Financial Advisors (NAPFA), the Ohio CLE Institute, The Columbus Foundation and the International Association of Advisors in Philanthropy.
John holds a Bachelor of Science from The Ohio State University and a Juris Doctorate from Capital University Law School (summa cum laude). John is a member of the Financial Planning Association (FPA), the National Association of Personal Financial Advisors (NAPFA), and the Columbus, State of Ohio and American Bar Associations. He also serves as a member of the Professional Council of The Columbus Foundation.
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