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Game Off: Fifth Circuit’s Merits Panel Overturns Motions Panel; Reinstates Preliminary Injunction Staying Enforcement of the CTA

Read Time: 1 min

In a rollercoaster of a ride, the merits panel of the U.S. Court of Appeals for the Fifth Circuit, on December 26, 2024, vacated the prior order of the Fifth Circuit’s motions panel staying the preliminary injunction enjoining enforcement of the Corporate Transparency Act (CTA). The last paragraph of the merit panel’s order reads:

The merits panel now has the appeal, which remains expedited, and a briefing schedule will issue forthwith. However, in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments, that part of the motions-panel order granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and the Reporting Rule is VACATED.

Once again, there is a nationwide preliminary injunction that: (1) enjoins the CTA, including enforcement of that statute and regulations implementing its beneficial ownership information (BOI) reporting requirements, and (2) stays all deadlines to comply with the CTA’s reporting requirements. 

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Game On: Preliminary Injunction on Corporate Transparency Act Lifted; Filing Deadlines Extended

December 26, 2024

The United States Court of Appeals for the Fifth Circuit on December 23, 2024, issued an order lifting a prior ordered issued by a federal district court in the Eastern District of Texas granting a nationwide preliminary injunction that: (1) enjoined the Corporate Transparency Act (CTA), including enforcement of that statute and regulations implementing its beneficial ownership information (BOI) reporting requirements, and (2) stayed all deadlines to comply with the CTA’s reporting requirements. 

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Corporate Transparency Act Burden Highlighted by Certain Holding Company Structures

December 17, 2024

Much has been written about the filing requirements under the Corporate Transparency Act (CTA) in the last year. Currently, enforcement of the CTA has been placed on hold. On December 3, 2024, a federal district court in the Eastern District of Texas issued an order granting a nationwide preliminary injunction that (1) enjoins the CTA, including enforcement of that statute and regulations implementing its beneficial ownership information reporting requirements, and (2) stays all deadlines to comply with the CTA’s reporting requirements. Nevertheless, should the injunction be lifted, reporting companies need to be prepared to comply with the CTA.

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Corporate Transparency Act Reporting Begins: Are You Ready?

January 2, 2024

Reporting Beneficial Ownership Information Effective January 1, 2024, companies must disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) within the United States Department of Treasury. The reporting requirement is part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shellMore

Podcasts

Podcast: What Will the Corporate Transparency Act Mean for Your Business?

October 1, 2021

Unless you are an exempt entity, the new Corporate Transparency Act will require you to disclose the beneficial owners of your company to the United States government. What is required, who is exempt, and what will compliance look like for companies and the attorneys and accountants who form them?