In a continuing series of judicial actions, on December 26, 2024, a merits panel of the Fifth Circuit Court of Appeals issued an order (the “Merit Panel Order”) reinstating the nationwide preliminary injunction enjoining enforcement of the Corporate Transparency Act (“CTA”) and the Reporting Rule, including the impending reporting deadlines, by vacating a stay of the injunction that a Fifth Circuit motions panel had entered on December 23, 2024. The Court of Appeals said it was taking such action in order to preserve the constitutional status quo while the court considers the parties’ weighty substantive arguments in an expedited appeal.
Following the decision of the Court of Appeals, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) published an alert that no filings under the CTA are currently required by law, however, voluntary filings are permissible.
The Court of Appeals has scheduled oral arguments for March 25, 2025, on the merits of the nationwide preliminary injunction. The Department of Justice could seek an emergency reconsideration of the Merits Panel Order requesting a decision prior to the March 25, 2025 hearing, but has not yet done so.
Gesmer Updegrove will continue monitoring developments in this area. In the meantime, if you have any questions about the CTA or this injunction, please contact Peter Moldave, Zane Fernandez, or Raissa Lima.
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