The Corporate Transparency Act is on hold again as the Fifth Circuit Court of Appeals vacates its earlier decision. The court reinstates a preliminary injunction, pausing enforcement of reporting deadlines while constitutional arguments are under review.
Appeals Court Puts Corporate Transparency Act on Hold
The Fifth Circuit Court of Appeals reversed its prior decision to allow enforcement of the Corporate Transparency Act’s reporting requirements. The court cited the need to preserve the constitutional status quo until substantive arguments from both parties are fully reviewed.
The case remains expedited, and the merits panel will issue a briefing schedule soon. Enforcement of the CTA and its reporting rule will remain paused pending further court proceedings.
