As previously reported, on December 23, 2024, a motions panel of the U.S. Court of Appeals for the Fifth Circuit grants the government’s emergency motion in the Texas Top Cop Shop matter to stay the preliminary nationwide injunctive relief from Corporate Transparency Act (“CTA”) filing obligations that had been granted on December 3, 2024, by the U.S. District Court for the Eastern District of Texas. On December 26, 2024, a separate panel of the Fifth Circuit assigned to evaluate the merits of the District Court’s grant of injunctive relief vacated the portion of the motions panel’s order granting the government’s motion to stay and reinstated the preliminary nationwide injunctive relief pending the merits panel’s consideration of the expedited appeal.
As a result of this latest action, the nationwide injunctive relief is back in effect, and CTA filing obligations are again suspended. Reporting companies can reasonably rely on the District Court’s original nationwide preliminary injunctive relief for now but should closely monitor any response from the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury (“FinCEN”).
As this situation remains fluid, entities with potential CTA filing obligations should continue to gather information required for their beneficial ownership information reports and be ready to file promptly if and when necessary. Entities may also submit their beneficial ownership information reports to FinCEN voluntarily if they prefer to do so.
