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AICPA

Client Alert: Fifth Circuit Flip-Flops on Enforcement of the Corporate Transparency Act

On December 23, 2024, a motions panel of the U.S. Court of Appeals for the Fifth Circuit lifted the preliminary injunction previously issued by the U.S. District Court for the Eastern District of Texas in Texas Top Cop Shop, Inc. v. Garland, effectively reinstating enforceability of the Corporate Transparency Act (“CTA”). Three days later, on December 26, 2024, a separate Fifth Circuit merits panel issued an order vacating the motions panel’s decision and reinstituting the Texas court’s suspension on CTA enforcement. The merits panel indicated that its order was designed “to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.” Tex. Top Cop Shop, Inc. v. Garland, No. 24-40792, 2024 U.S. App. LEXIS 32702, *4 (5th Cir. Dec. 26, 2024). Read more here