Earlier this week the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., Case No. 6:24-cv-00336 (E.D. Tex.), stayed its preliminary injunction enjoining the reporting rules contained in the Corporate Transparency Act (the “CTA”). Accordingly, and absent any changes between now and the […]
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 […]
Yesterday afternoon, December 23, 2024, we learned that the United States Court of Appeals for the Fifth Circuit revived the immediate enforceability of the Corporate Transparency Act (CTA). The Fifth Circuit’s decision stayed the preliminary injunction issued on December 3, 2024, and allows the federal government to continue enforcing the CTA while litigation in Texas […]
Following last week’s enjoinment of the Corporate Transparency Act (CTA), the Financial Crimes Enforcement Network (FinCEN) has announced that reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. Reporting companies may, however, continue […]
Late Tuesday afternoon (December 3, 2024), we learned that the U.S. District Court in Texas has enjoined the enforcement of the Corporate Transparency Act (the “CTA”) in part due to the question of whether the CTA is constitutional and beyond the powers instilled to Congress. For reference, this was decided in a case titled Texas […]