In the latest twist for the Corporate Transparency Act (CTA) during the battle through the courts, there is yet another update.
Just last night, on December 26, 2024, a three-judge panel of the Fifth Circuit Court of Appeals vacated a separate panel’s order issued three days earlier staying the nationwide preliminary injunction enjoining enforcement of the CTA issued by the United States District Court for the Eastern District of Texas.
This ruling preserves the “ status quo” by enjoining all CTA compliance requirements and enforcement mechanisms pending final adjudication of the merits of the case. Corporate entities now have no obligation to comply with the CTA’s beneficial ownership requirements. This is the opposite of the ruling some 3 days ago.
Clearly, the implementation of this requirement on companies remains a fluid legal situation.