Enforcement of the Corporate Transparency Act, which would require more than 32 million small businesses to file ownership information to the Financial Crimes Enforcement Network (FinCEN) in the U.S. Treasury Department, remains on hold, FinCEN clarified.

According to the Wall Street Journal, the Supreme Court on Thursday overturned a lower court order that was blocking enforcement of the CTA, but a separate national injunction remains in place.

FinCEN issued an alert Friday confirming compliance with the CTA isn’t mandatory while the injunction remains in force.

“In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports,” the Financial Crimes Enforcement Network said on its website.

According to FinCEN, on January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop.

Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force.

NACS and its partners have argued in favor of the injunction put in place last month. NACS’ brief states: “Staying the injunction would have irreversible negative repercussions for small businesses throughout the nation.”