CTA Update – December 27, 2024
Late last night, December 26, 2024, a Fifth Circuit Panel has reinstated the nationwide injunction blocking the enforcement of the Corporate Transparency Act (the “CTA”). In the order, the Court stated that “in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments, that part of the motions-panel ordering granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and the reporting rule is vacated.”
Why This Matters: Earlier this week, the FinCEN announced an extension of the filing requirements to January 13, 2025. However, once again, the enforcement of the CTA is no longer required.
This situation is rapidly evolving. We anticipate this case may end up in the United States Supreme Court’s hands. We will continue to review and monitor the situation and keep you apprised of the latest developments. Please feel free to reach out to Rich Bar (rbar@gkglaw.com) or Frank Beninato (fbeninato@gkglaw.com) if you have any questions.