BlogLine

On again, off again, on again?

12/27/24

By: Nancy M. Reimer

The Fifth Circuit Court of Appeals vacates its stay of the injunction. As we reported on December 26, 2024, the Fifth Circuit Court of Appeals stayed the nationwide injunction enjoining the enforcement of the Corporate Transparency Act and its corresponding reporting rules. In staying the injunction, the Fifth Circuit also expedited the appeal to the next available oral argument panel.

The case was referred to the merits panel. The panel is expected the panel to issue a briefing schedule shortly. In the meantime, however, the panel issued an order vacating the stay of the injunction issued by the Fifth Circuit. The District Court’s nationwide preliminary injunction staying the enforcement of the CTA and its reporting requirements is in effect. The Financial Crimes Enforcement Network (“FinCen”) no longer has the ability to enforce the Business Ownership Interest filing requirement.

FinCen has yet to comment on the ruling. The AICPA is advising those helping clients with BOI reporting should gather the information necessary for the report and be prepared to file if the injunction is lifted again.

For more information on this topic, please contact Nancy M. Reimer at nancy.reimer@fmglaw.com; or your local FMG relationship partner.