A Texas federal judge has lifted a preliminary nationwide injunction issued in Smith v. United States Department of the Treasury which had previously halted reporting requirements under the Corporate Transparency Act (CTA). The ruling means reporting companies will soon be required to be in compliance with the CTA. As we shared last week, the U.S. government recently appealed the injunction. In reversing the nationwide injunction, the Texas court has followed precedent set earlier this year by the Supreme Court in the Texas Top Cop Shop case.

On Februar 19, 2025, FinCEN released new guidance stating that as a result of the new court order, beneficial ownership information (BOI) reporting requirements under the CTA are once again back in effect. FinCEN has shared that businesses are not required to immediately comply and are offering a 30-calendar day period for most companies to submit BOI reports. The guidance reads:

“For the vast majority of reporting companies, the new deadline to file an initial, updated, and/or corrected BOI report is now March 21, 2025. FinCEN will provide an update before then of any further modification of this deadline, recognizing that reporting companies may need additional time to comply with their BOI reporting obligations once this update is provided.” – February 19^th, 2025, FinCEN Guidance

The new guidance from FinCEN implies that this deadline may be amended before March 21^st. Additionally, the new administration has signaled a desire to reduce regulatory burdens placed on small businesses and have indicated that exemptions may be coming for “lower-risk entities.”

“FinCEN also intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.”

Last week, the U.S. House passed the Protect Small Business from Excessive Paperwork Act of 2025 (H.R.736), a bill that would delay CTA reporting requirements until January 1^st, 2026. Senate Banking Committee Chairman Tim Scott (R-SC) is leading the effort on the Senate side to pass this legislation. So far, the legislation still remains with the Senate Banking Committee and a vote has not been scheduled.

Call your Senators now to advocate for Senate passage of the Protect Small Businesses from Excessive Paperwork Act of 2025. NLBMDA will continue to closely monitor any new announcements from FinCEN and will remain active in advocating for the Senate to act and swiftly pass CTA delay legislation.