Corporate Transparency Act: Injunction Restored
PRESS RELEASE
For Immediate Release, December 27, 2024
Fifth Circuit Panel Reinstates Nationwide Injunction Halting Corporate Transparency Act Reporting Mandate
Small businesses are relieved from CTA beneficial ownership reporting requirements.
WASHINGTON, DC – On December 26, the Fifth Circuit Court of Appeals reinstated a nationwide preliminary injunction blocking the enforcement of the Corporate Transparency Act. The decision relieves 32 million small businesses of their obligations under the CTA’s beneficial ownership reporting mandate.
On December 3, 2024, a U.S. District Court issued a nationwide preliminary injunction banning the enforcement of the CTA in Texas Top Cop Shop v. Garland. On emergency appeal, the Fifth Circuit motions panel stayed the order on December 23. The stay had the effect of reimposing the CTA’s reporting mandate and compliance deadlines (which the government subsequently pushed back to January 13).
On December 26, the Fifth Circuit merits panel issued an order setting the case on an expedited schedule and reinstating the original December 3 injunction “to preserve the status quo” through the current appeal.
The Fifth Circuit’s decision appropriately relieves Americans of costly and burdensome regulatory obligations that carry potential criminal penalties while it “considers the parties’ weighty substantive arguments” as to whether Congress possesses authority under the Constitution to enact the CTA.
The court’s order lifting the stay and reimposing the injunction can be found here.
About the Center for Individual Rights:
The Center for Individual Rights is a national public interest legal organization that provides free representation to clients whose rights have been violated or are seriously threatened. Celebrating its 35th year, CIR has an impressive record of landmark victories in the Supreme Court of the United States and many other courts, setting legal precedents that restore and protect fundamental individual rights that are necessary for a flourishing and free society.
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