Category: Thought Leadership

Client Alert: Treasury Suspends CTA Enforcement for U.S. Citizens & Domestic Companies

On March 2, 2025, the U.S. Treasury announced a temporary suspension of Corporate Transparency Act (CTA) enforcement for U.S. citizens, domestic reporting companies, and their beneficial owners, and indicated it intends to narrow the CTA’s scope so that the reporting requirements apply only to foreign reporting companies.

Here’s what this means:
🔹Narrowing the Scope of Reporting: The Treasury aims to limit CTA reporting only to foreign reporting companies, potentially eliminating compliance for U.S. businesses.
🔹Enforcement Temporarily Paused: While the CTA’s reporting obligations remain in place, no penalties or fines for noncompliance will be issued at this time.
🔹Upcoming Rule Changes: FinCEN is expected to release an interim final rule by March 21, 2025, extending deadlines and clarifying BOI reporting obligations.

Next Steps for Businesses:
✅ Domestic Companies: If you’ve already filed BOI reports or were preparing to, consider pausing further action until FinCEN provides clarity.
✅ Foreign Companies: Continue preparing BOI reports, given reporting obligations are likely to remain, but consider waiting to file until further guidance is provided by FinCEN.
✅ Stay Alert: More guidance is coming soon— stay tuned for revised reporting requirements and additional enforcement decisions.

We’re tracking developments and will provide updates as FinCEN releases new guidance. Read more here.

For more information on our CTA team, visit their bios here:
Lorren Patterson
Paul-Kalvin Collins
Japera Parker

#CorporateTransparencyAct #CTA #FinCEN #BOI #RegulatoryCompliance #LegalUpdate

Client Alert: “The Rollercoaster Ride Continues: CTA Reporting Obligations Still on Hold”

The Corporate Transparency Act (“CTA”) continues to take reporting companies on a roller coaster ride. Now, there are not just one, but two Eastern District of Texas federal cases challenging the requirement for certain companies to disclose their beneficial ownership information to the Financial Crimes Enforcement Network (“FinCEN”).

While you should hold on tight with your seatbelt fastened, the bottom line is that, for the time being, the reporting requirements are still on hold.

What’s Happening?
Two separate cases in the Eastern District of Texas have led to nationwide injunctions blocking enforcement of CTA’s beneficial ownership reporting requirements. The Supreme Court of the United States briefly reinstated the reporting requirement in Texas Top Cop Shop v. Garland, but a second case, Smith v. U.S. Department of the Treasury, has put reporting on hold again. Now, the government has appealed the Smith injunction with FinCEN indicating it will briefly extend reporting deadlines and potentially modify its requirements altogether for lower-risk entities, should the government succeed.

What It Means for Businesses:
✅ No Immediate Filing Required – Companies are NOT currently required to file beneficial ownership information within FinCEN.
✅ No Penalties for Missed Deadlines – Entities that missed earlier deadlines will not face penalties while the injunctions are in place.
✅ Assess Your Status and Compile Information – Determine if your entity qualifies as a “reporting company,” and if so, continue to gather BOI and stay on top of ownership changes.
✅ Stay Informed – The legal status of the CTA is evolving quickly with the potential for revised requirements or quickly reinstated deadlines.
✅ Voluntary Reporting – You can still submit reports to FinCEN, but it’s not required.

Our CTA team will keep you updated on the latest developments. To read the full Client Alert, visit here.

For more information on our CTA team, visit their bios here:
Lorren Patterson
Paul-Kalvin Collins
Japera Parker

UPDATE: FinCEN Responds to Preliminary Injunction on CTA Enforcement

As we shared in our client alert last week, on December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction in Texas Top Cop Shop, Inc., et al. v. Garland, et al., temporarily halting enforcement of the Corporate Transparency Act (“CTA”) and its beneficial ownership information (“BOI”) reporting requirements.

In response, FinCEN announced it will comply with the Court’s order for as long as it remains in effect, noting that during this time reporting companies are not currently required to file BOI reports and will not face penalties for failing to report while the injunction remains in effect. Voluntary submissions, however, are still permitted.

What This Means for You:

No Immediate Filing Requirement: The preliminary injunction stays all BOI reporting requirement deadlines for now. Reporting companies are momentarily relieved of reporting obligations.

Litigation Ongoing: As expected, the Department of Justice filed a Notice of Appeal on behalf of the Department of the Treasury, signaling the government’s intent to challenge the court’s decision. The ultimate status of the injunction and the CTA remains uncertain, pending further court rulings or guidance.

Preparation Still Recommended: While filing is currently paused, reporting companies should nevertheless continue assessing their BOI reporting requirements and gathering necessary information to ensure readiness if the injunction is lifted. FinCEN has not yet provided guidance on how much time reporting companies will be granted to file their BOI reports if the Texas District Court’s injunction is lifted and how quickly enforcement of the CTA would resume.
Next Steps

We advise clients to monitor this matter closely and maintain preparation for potential filing requirements. Our team is actively tracking developments and will provide updates as the matter evolves. To read more on the recent CTA preliminary injunction in Texas Top Cop Shop, Inc., et al. v. Garland, et al., visit here.

If you have specific questions or need assistance with your compliance strategy, please do not hesitate to contact the BG CTA Team:

Lorren Patterson – lpatterson@baileyglasser.com

Paul-Kalvin Collins – pcollins@baileyglasser.com

Japera Parker – jparker@baileyglasser.com

Client Alert: Protecting Children Online on Universal Children’s Day

Today is Universal Children’s Day, celebrated on November 20th each year to promote international togetherness, awareness among children worldwide, and improving children’s welfare.

In the article, “Protecting Children Online on Universal Children’s Day,” Sharon Iskra, Bailey Glasser partner and leader of our Institutional Abuse & Neglect team, encourages us to celebrate by reflecting on all the wonders of childhood: the innocence, joy, curiosity, and energy, but realizing the hazards to today’s children, especially online, where children can be trapped and manipulated through child sexual abuse materials (CSAM).

“It’s up to every one of us to protect kids, whether they’re our own or those we encounter through work or friends. Child safety IS your business – and at Bailey Glasser, it’s our business too,” Sharon writes.

One of the best things we can do to protect a child is to be a genuinely safe person of trust for them. Practice these fundamentals as appropriate in the context of your relationship with a child:

1. Parents/caregivers, talk to your children regularly and in age-appropriate ways about online safety.
2. Empower children, teach them to trust their instincts and repeat to them that if something doesn’t seem right or frightens them, take it to a safe adult right away.
3. Teach body integrity and self-worth.
4. Remind children that adults are supposed to protect children, and children are supposed to be children.

Read the full article to learn more tips about how to be a person of trust for children, how to protect them from CSAM, and for nationally sourced resources on how to begin talking to your child.

Learn more information on Sharon Iskra by visiting here.

#UniversalChildrensDay #CSAM #Onlinesafety #Abuse #Neglect #BaileyGlasser #ClientAlert

Nick Johnson to Lead Session During NBI CLE on “Resolving Boundary Disputes in Virginia”

Nick Johnson, Bailey Glasser’s Corporate, Commercial Litigation, and Criminal Practice Area Leader, will be speaking at NBI’s CLE Webinar on “Resolving Boundary Disputes in Virginia” on Wednesday, October 9th. Nick will lead the session titled, “Oil, Gas, and Mineral Rights Disputes: Employing the Top Methods,” sharing his invaluable experience in complex mineral development and boundary resolution.

With a practice spanning high-stakes litigation over agreements like mineral development, financial derivatives, and partnership contracts, Nick also advises energy clients on complex environmental, reclamation, and permitting compliance issues.

Nick’s most recent victory includes a major win for interstate commerce and constitutional law, where his team secured a summary judgment for Foresight Coal Sales, declaring Kentucky’s SB 257 unconstitutional and enjoining the Public Service Commission from enforcing the law—an important step forward in Foresight’s long-standing battle against discriminatory practices in interstate commerce.

To learn more and register for the event, visit here.

For more information on Nick Johnson, visit here.

BG Lawyer Bryce Tish Publishes Note in Drake Law Review

Congratulations to BG lawyer Bryce Tish on the publication of his note in the Drake University Law Review, titled “Such Good Boys: The Dogmatic Casting Alert and Probable Cause for Drug Sniffing Dogs.” Bryce is a member of the firm’s Consumer Protection Practice Group, and is in our Iowa office.

“Police canines are very smart and highly trained—but just like humans, they make mistakes,” Bryce writes in the note’s summary. “As a matter of constitutional principle, it would be better to err on the side of caution and require a hard alert as opposed to a casting alert by a drug-sniffing dog—especially when someone’s liberty and freedom are at stake.” This Note addresses the circuit split between the Eleventh and Fifth Circuit Courts of Appeals on what kind of dog alert—a hard or casting alert—gives rise to probable cause and a subsequent warrantless search and argues that hard alerts should be required for probable cause to search a vehicle.

This note was selected by Bryce’s law school peers for publication in the Spring 2024 edition of the Drake Law Review. And the handsome dogs featured in the image above are Bryce’s dogs Randy and Ruby.

To read the full Note, please visit here.

To learn more about Bryce Tish, please visit here.

#LawReview #BaileyGlasser #Thoughtleadership

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