Court Blocks Nationwide Injunction of the Corporate Transparency Act: Fifth Circuit Grants Stay Pending Appeal; Compliance Period Briefly Extended
Published: December 24, 2024
On December 23, 2024, the Fifth Circuit Court of Appeals granted the government’s emergency motion for a stay, effectively blocking a nationwide injunction issued by a district court against the Corporate Transparency Act (CTA) and its corresponding Reporting Rule. While this decision preserves the CTA’s reporting requirements, the Financial Crimes Enforcement Network (FinCEN) has extended the compliance reporting deadline to January 13, 2025, giving entities a brief window to file their reports while appellate litigation continues. Businesses are encouraged to work with deliberate speed to meet this deadline.