The Corporate Transparency Act is on hold again.
In the latest head-spinning development, the Fifth Circuit Court of Appeals on December 26 vacated its stay of December 23, 2024, which had stayed the nationwide injunction of the CTA that the District Court had issued on December 3, 2024. As such, the injunction on the CTA is once again in effect. An expedited appeal will be heard soon, so this could change again in short order. We recommend that clients stay prepared to file, but filing at this point is again voluntary.
United States Court of Appeals for the Fifth Circuit
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No. 24-40792
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Texas Top Cop Shop, Incorporated; Russell Straayer; Mustardseed Livestock, L.L.C.; Libertarian Party of Mississippi; National Federation of Independent Business, Incorporated; Data Comm for Business, Incorporated,
Plaintiffs—Appellees,
versus
Merrick Garland, U.S. Attorney General; Treasury Department; Director FinCEN Andrea Gacki, Director of the Financial Crimes Enforcement Network; Financial Crimes Enforcement Network; Janet Yellen, Secretary, U.S. Department of Treasury,
Defendants—Appellants.
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Appeal from the United States District Court for the Eastern District of Texas USDC No. 4:24-CV-478
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ORDER:
On December 3, 2024, the district court entered an order enjoining enforcement of the Corporate Transparency Act and its corresponding Reporting Rule. Texas Top Cop Shop, Inc. v. Garland, No. 4:24-CV-478, 2024 United States Court of Appeals Fifth Circuit FILED December 26, 2024 Lyle W. Cayce Clerk C
WL 5049220 (E.D. Tex. Dec. 5, 2024).
The Government requested a stay of the preliminary injunction, which the district court denied. Texas Top Cop Shop, Inc. v. Garland, No. 4:24-CV-478, 2024 WL 5145951 (E.D. Tex. Dec. 17, 2024). The Government appealed, and on December 23, 2024, a motions panel of this court granted the government's emergency motion for a stay pending appeal. Texas Top Cop Shop, Inc. v. Garland, No. 24-40792, 2024 WL 5203138 (5th Cir. Dec. 23, 2024) The order also expedited the appeal to the next available oral argument panel.
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.
LYLE W. CAYCE, CLERK
United States Court of Appeals for the Fifth Circuit
/s/ Lyle W. Cayce
ENTERED AT THE DIRECTION OF THE COURT
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