On December 26, 2024, a panel for the U.S. Court of Appeals for the Fifth Circuit (Fifth Circuit) vacated the previous stay of the lower court’s preliminary injunction against enforcement of the Corporate Transparency Act (CTA).
As a result, the CTA and its reporting requirements are back on hold.
In Texas Top Cop Shop, Inc., et al v. Garland et al., the Fifth Circuit explained that the decision was made to preserve the constitutional status quo while the merits panel considers the substantive arguments presented by both parties.
This ruling effectively restores the lower court’s original preliminary injunction that blocked enforcement of the CTA.
