Commencing once more: Fifth Circuit Revokes Temporary Halt of Restraining Order in CTA Matter
Commencing once more: Fifth Circuit Revokes Temporary Halt of Restraining Order in CTA Matter
In an order dated December 26, 2024, the Fifth Circuit Court of Appeals revoked their own halt on the District Court's temporary prohibition of enforcing the January 1, 2025 compliance reporting deadline under the Corporate Transparency Act in the case of Texas Top Cop Shop v. Garland. Initially, FinCEN had pushed back this deadline from January 1, 2025.
The Fifth Circuit explained this switch due to:
"The merits panel has received the appeal, which continues to be expedited. A briefing schedule will be immediately shared. However, in order to maintain the constitutional current situation while the merits panel examines the substantial arguments from both sides, the portion of the motion-panel order that approved the government's request for a stay of the district court's preliminary injunction preventing enforcement of the CTA and the Reporting Rule is annulled."
Stay tuned for updates as events unfold.
Following the Fifth Circuit's decision, the Texas Top Cop Shop will need to comply with the CTA's reporting deadline by January 1, 2025, as the Fifth Circuit Court of Appeals overturned FinCEN's pushback of this deadline. The CTA case between Texas Top Cop Shop and Garland will continue in the Fifth Circuit, with both sides expected to present their arguments promptly.