By Mike Hunter
The game of ping pong in the federal courts over the enforceability of the CTA continues.

On January 23, 2025 the U.S. Supreme Court dissolved the injunction issued in December by the 5th Circuit Court of Appeals. While at first blush we might think this means that HOAs and other business entities are required to register their “beneficial owners” with FinCEN, there is another federal case developing in Texas, Smith v. U.S. Department of the Treasury. In that case, the court issued a “nationwide order” ruling that reporting companies are not required to file beneficial ownership information (“BOI”).
Below is the press release issued by FinCen:
“On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
Here is a link to a Wall Street Journal article on the litigation:
Here is a link to FinCen’s website: https://fincen.gov/boi
We will continue to monitor developments and post updates on our blog as they become available.
Author: Kirk Palmer & Thigpen
Articles have been Reprinted with permission from the charlotte observer and Mike Hunter.
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