Articles

There and Back Again – A Corporate Transparency Act Tale

Legal alert by Lamb McErlane attorneys Vasilios J. Kalogredis, Esq. and Sonal Parekh, Esq.

On January 23, 2025, the U.S. Supreme Court stayed the injunction granted by the U.S. District Court for the Eastern District of Texas in Texas Top Cop Shop v. Garland, which enjoined the Financial Crimes Enforcement Network (FinCEN) from enforcing the Corporate Transparency Act (CTA) nationwide. FinCEN indicated, however, that it is still subject to a nationwide ban on the enforcement of the CTA under an order in a separate case, Smith v. The United States Department of Treasury.

Accordingly, FinCEN issued a statement indicating that reporting companies are not currently required to file beneficial ownership information (BOI) reports with FinCEN and are not subject to liability if they fail to file the BOI report while the Smith order remains in force. Of course, reporting companies are not prevented from voluntarily submitting BOI reports.

The CTA reporting requirements under FinCEN continue to present a “There and Back Again” tale – a never-ending saga. For additional background, please refer to our previous blog article,CTA Reporting Requirements: The Never-Ending Rollercoaster.”

As stated in our prior articles and alerts, neither we nor our Firm (Lamb McErlane PC) will be responsible for filing BOI on anyone’s behalf unless and until agreed to in writing by all parties.

If you have any questions or if we may be of further assistance regarding your entity’s obligations under the CTA, or other health law matters, please feel free to contact Bill Kalogredis, Esq. or Sonal Parekh, Esq.

*This alert is for educational purposes only and is not intended to be legal advice. Should you require legal advice on this topic, any health care matter, or have any questions or concerns, please contact Vasilios J. (Bill) Kalogredis, Esq. or Sonal Parekh, Esq.

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Vasilios J. (Bill) Kalogredis, Esq. has been advising physicians, dentists, and other healthcare professionals and their businesses as to contractual, regulatory and transactional matters for 50 years. He is Chairman of Lamb McErlane PC’s Health Law Department. Bill can be reached by email at bkalogredis@lambmcerlane.com or by phone at 610-701-4402.

Sonal Parekh, Esq., is an associate at Lamb McErlane PC who focuses on healthcare transactional matters and a broad range of healthcare regulatory-related issues on behalf of healthcare systems, physicians, dentists, and other healthcare providers, and is a pharmacist by education and training. Sonal can be reached by email at sparekh@lambmcerlane.com or by phone at 610-701-4416.