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Corporate Transparency Act Compliance Remains Voluntary

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Rödl & Partner Tax Matters Volume 2025-2, published January 28, 2025

In Tax Matters Vol 2024-5​, we reported that on December 3, 2024, a federal district court issued an order prohibiting the enforcement of the Corporate Transparency Act. Since that time, the U.S. Supreme Court lifted the nationwide injunction in Texas Top Cop Shop, Inc. v. McHenry, but a separate injunction was then issued in Smith, et al. v. U.S. Department of the Treasury, blocking enforcement of the CTA’s reporting requirements. Therefore, companies are still not required to comply with the reporting requirements under the Corporate Transparency Act (“CTA”) and compliance remains voluntary while the Smith injunction is in place. Our recommendations as outlined in Tax Matters Vol 2024-5 remain in effect. Those recommendations are as follows:

What Should You Do Now?

1. Consider Whether to File Your BOI Report or Wait

The constitutionality of the CTA remains unresolved, but the injunction could be overturned at any time. You may choose to voluntarily file now or wait and see what happens.

2​. Be Prepared to File Quickly if the Injunction is Lifted

As mentioned above, FinCEN has not stated whether an extended deadline will be provided if the injunction is lifted so ensure you are ready to file promptly if needed.

3.​ Continue to Factor the CTA into Business Changes

Continue to evaluate CTA’s potential implications on changes in your business so you are prepared.

If you have any questions, please contact your local Rödl & Partner representative.

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