Fifth Circuit Reverses Course on Reinstating the Corporate Transparency Act Reporting Deadlines

 Posted on December 27, 2024 in Business

The uncertainties surrounding the Corporate Transparency Act ("CTA") continue with the most recent decision from the Fifth Circuit just days after it granted the Government’s emergency request to lift the nationwide injunction against the enforcement of the CTA.

As detailed in our prior blogs, the Government appealed the U.S. District Court’s injunction in early December, and the motions-panel of the Fifth Circuit Court of Appeals reinstated the CTA’s reporting deadlines on December 23, 2024.

On December 26, 2024, the merits-panel, who is tasked with ruling on the government’s appeal of the nationwide injunction, vacated the motions-panel’s order to reinstate the reporting deadlines "in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments . . ."

In sum, the CTA is once again unenforceable while the Fifth Circuit hears the full appeal on an expedited basis. In the meantime, reporting companies should monitor these developments and collect the information needed to comply with the CTA’s reporting requirements if the Government prevails on its appeal.

Due to the important nature of CTA and its significant impact on businesses nationwide, the attorneys at Mallery s.c. will continue to monitor the Fifth Circuit’s decisions and will provide updated information as quickly as possible.