On December 26, 2024, the United States Court of Appeals for the Fifth Circuit vacated its earlier stay of a Texas District Court’s nationwide preliminary injunction in Texas Top Cop Shop, Inc. v. Garland, which had temporarily blocked enforcement of the Corporate Transparency Act (CTA).
This latest order reinstates the district court’s preliminary injunction, meaning the CTA’s reporting requirements are no longer enforceable while the Fifth Circuit considers the government’s expedited appeal. For now, entities are not required to comply with the CTA or its reporting rules, but the legal status of the law remains subject to change.
What This Means for Entities Subject to the CTA
- Nationwide Injunction in Effect: The CTA’s reporting requirements are unenforceable for as long as the district court’s injunction remains in place. This ruling applies to all entities nationwide.
- Vacated Compliance Deadlines: The compliance deadlines previously issued by the Department of Treasury and FinCEN are no longer in effect due to the reinstated injunction.
Next Steps
Entities that believe they may eventually be subject to the CTA should:
- Monitor developments in Texas Top Cop Shop, Inc. v. Garland and any subsequent rulings by the Fifth Circuit or Supreme Court.
- Consult legal counsel to understand their obligations and prepare for potential changes, as future rulings could reinstate enforcement on short notice.
- Stay informed about FinCEN guidance or government actions regarding compliance deadlines if the injunction is lifted.
Contact Information
This summary provides an overview of a complex legal situation and does not constitute legal advice. For questions about the CTA or assistance with Beneficial Ownership Information filings, please contact:
- Casey Moriarty at cmoriarty@omwlaw.com
- Chris Collison at ccollison@omwlaw.com
For additional updates and insights, visit our Corporate Transparency Act Resource Center.
