Fifth Circuit Changes Its Mind. CTA Filings Not Required Pending Further Review
On December 26, 2024, in an Order entered “at the direction of the Court,” the Fifth Circuit Court of Appeals vacated its own stay of District Judge Amos Mazzant’s nationwide injunction of the Corporate Transparency Act (“CTA”). The Fifth Circuit’s latest Order vacating the stay — and once again putting the CTA’s reporting requirements on hold — wraps up a tumultuous week for the CTA, which began on Monday, December 23 when a motions panel of the Fifth Circuit stayed Judge Mazzant’s injunction. The Fifth Circuit’s explanation for vacating that stay was brief, noting at the end of a three paragraph Order that:
“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.”
As of the issuance of the December 26th Order, therefore, all CTA reporting requirements are once again enjoined. We will provide additional updates as they become available.
For more information on the Corporate Transparency Act, please click here.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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