Corporate Transparency Act Preliminary Injunction is Reinstated

Written By:

Gianfranco A. Pietrafesa

Partner

Archer & Greiner PC

On December 3, 2024, in Texas Top Cop Shop, Inc. v. Garland, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction temporarily preventing the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) from enforcing the Corporate Transparency Act (“CTA”). See our Advisory.

On December 23, 2024, a “motion panel” of the U.S. Court of Appeals for the Fifth Circuit entered an order staying the preliminary injunction, thus allowing FinCEN to enforce the CTA. See our Advisory.  Shortly thereafter, FinCEN issued an alert extending certain deadlines to file beneficial ownership information reports. See our Advisory.

On December 26, 2024, a “merits panel” of the U.S. Court of Appeals for the Fifth Circuit entered an order vacating the stay of the preliminary injunction, which means that the nationwide preliminary injunction is reinstated. As a result, FinCEN cannot enforce the CTA and its implementing regulations and all extended filing deadlines are stayed for the time being.

What to do now? Good question! Please review the last paragraph of our December 9, 2024 Advisory for possible courses of action.

For more information about the CTA in general, please see our November 18, 2024 Advisory.

If you have any questions, please contact Gianfranco Pietrafesa at gpietrafesa@archerlaw.com or 201-498-8559, or any member of Archer & Greiner’s Business Counseling Group.

DISCLAIMER: This client advisory is for general information purposes only. It is a summary, not a full analysis, of the topic. It is not intended, and should not be construed, as legal advice, and may not be used or relied upon as a substitute for legal advice by a qualified attorney regarding a specific matter. It may be considered an advertisement for certain purposes.