UPDATE Feb. 13: The House passed the Protect Small Businesses from Excessive Paperwork Act of 2025 on Feb. 10. This bill would extend the deadline for companies formed or registered before January 1, 2024, to file beneficial ownership information to January 1, 2026. It is currently under consideration by the Senate Committee on Banking, Housing, and Urban Affairs.

Despite the change in administration, the federal government continues to seek restoration of the Corporate Transparency Act, urging circuit courts to lift a nationwide injunction blocking enforcement of the law.

On Feb. 5, the Treasury Department filed a notice of appeal and motion for stay against the Eastern District of Texas injunction currently pausing enforcement. On Feb. 7, officials with the Treasury Department filed a pair of briefs with the Fifth Circuit and Fourth Circuit courts of appeals:

  • The Fifth Circuit brief argues that the CTA, despite numerous challenges across the country, will ultimately prevail because Congress acted “well within its enumerated powers” when it enacted the law at the end of the first Trump administration.
  • The Fourth Circuit brief argues that a federal judge’s October order denying a motion to prevent enforcement of the CTA should stand because the “plaintiffs present no evidence demonstrating that those requirements entail any irreparable harm.”

The National Law Review reports that any of these courts “could reinstate the deadline at any time, triggering the start of the 30-day clock to file.” The government’s Feb. 5 motion states that the filing deadline would be extended for 30 days if the stay is granted and enforcement resumes. During that extension period, Treasury officials would consider whether lower-risk categories of entities should be excluded from the filing requirements, potentially offering some relief. 

ICYMI: BOI Reporting Rule Remains On Hold Despite Supreme Court Order

So far, district courts across the country have split on the CTA. A Law360 review of court filings showed three have issued injunctions, three have dismissed complaints, four have yet to issue decisions and one has issued a stay. Also, Rep. Warren Davidson, R-Ohio, and Sen. Tommy Tuberville, R-Ala., have reintroduced the Repealing Big Brother Overreach Act aimed at overturning the Corporate Transparency Act. The bill was introduced in 2024 but stalled in committee in both houses.

Bloomberg Law reports that President Donald Trump’s personal views on the Corporate Transparency Act remain unclear. Although his administration largely supported an earlier version of the legislation and he ultimately signed it into law, Trump vetoed the CTA when it first crossed his desk.

For now, businesses subject to the requirement to file beneficial owner information are left to monitor the ongoing back-and-forth concerning the law’s reporting requirements, and the Treasury Department is not pursuing enforcement while the lower courts continue to work through pending lawsuits. Small business owners can choose not to file for now, but they may be obliged to do so quickly based on future court rulings.

ICYMI: BOI Reporting Requirements: What Small Businesses Need To Know

For questions or suggestions on regulatory or government affairs issues, please contact Rachel Zoch at RachelZ@ppai.org.