Current Status: BOI Reporting Still Paused

Despite recent Supreme Court action, beneficial ownership information (BOI) reporting requirements remain on hold. However, given the Supreme Court’s 8-1 decision for the first injunction, we anticipate a similar outcome with this recent injunction.

Here's the current landscape:

Timeline of Key Events

First Injunction

• December 3, 2024: Judge Amos Mazzant (Eastern District of Texas) issues nationwide injunction in the Texas Top Cop Shop case

• Department of Justice appeals

• January 23, 2025: Supreme Court Justice Alito grants stay of this injunction

Second Injunction

• January 7, 2025: Judge Jeremy Kernodle (Eastern District of Texas) issues second nationwide injunction

• Government still within appeal window

• This injunction remains in effect, blocking CTA implementation

FinCEN's Official Position

The Financial Crimes Enforcement Network has clearly stated:

• Companies and trusts are not currently obligated to file BOI

• No liability for non-compliance while injunction is active

• Voluntary filing remains an option

Why Two Injunctions Matter

The dual injunction situation creates an important legal dynamic:

• Even though the Supreme Court lifted the first injunction

• The second injunction independently blocks enforcement

• Both came from the Eastern District of Texas but different judges

• Different legal cases with separate proceedings - hence the Supreme Court wasn’t overruled by a lower court, they just haven’t been presented with the second injunction and there has yet to be an appeal.

Legal Status

• Government hasn't yet appealed the second injunction

• Plaintiffs' lawyer Chance Weldon confirms their injunction remains active

• Appeal window still open for government response

• Food for thought: it is strange the government has yet to appeal this, as they have been quick to act in the first injunction.

What This Means for Businesses

Immediate Impact

• BOI reporting requirements remain paused

• No enforcement possible while second injunction stands

• No penalties for non-compliance

• Voluntary filing still permitted

Strategic Considerations

• Monitor for potential government appeal of second injunction

• Maintain preparation for possible quick implementation

• Consider voluntary filing if it aligns with business strategy

• Stay informed about ongoing legal developments

Looking Forward

While the Supreme Court's action on the first injunction suggested movement toward implementation, the second injunction ensures continued pause in enforcement. Businesses should remain alert for:

• Potential government appeal

• Further court actions

• Additional FinCEN guidance

• Changes in compliance requirements

Bridge to BOI continues to monitor these developments. Follow us for immediate updates as this situation evolves.