The Ping Pong Ball Match and the Corporate Transparency Act’s Requirement to File the BOI Report

On December 3, 2024, a Texas federal judge issued a nationwide injunction preventing the enforcement of the Corporate Transparency Act (CTA), which required most corporations to file a Beneficial Ownership Information (BOI) report. The judge cited concerns about its constitutionality and disproportionate impact on small businesses. A panel of one judge on the court of appeals stayed the injunction. Then, a panel of two reinstated the injunction.

On January 23, the Supreme Court stayed that injunction. However, there is a different injunction still in place that has not been stayed. 

If your entity has not yet filed a BOI, it will not have to report as long as this injunction is in effect. Keep in mind that an appellate court may choose to overturn this injunction, at which point your entity will need to be ready to submit the BOI report. For now, though, entities can delay filing BOIs and wait to see if the requirement will be reinstated at a later date. Of course, entities may voluntarily file the BOI.