As discussed in our previous blogs, on December 3, the Federal District Court for the Eastern District of Texas enjoined the enforcement of the Corporate Transparency Act on a national basis, and on December 5th the government filed its Notice of Appeal with the 5th Circuit Court of Appeals.
Subsequently, the government filed a motion with the Circuit Court to immediately stay the preliminary injunction or, alternatively, to narrow the injunction to just Texas Top Cop Shop, Inc. and the other plaintiffs. If the government’s motion is successful, the CTA’s filing requirements could be reinstated.
On December 13, the 5th Circuit ordered the plaintiffs to respond by December 17 and the government to reply to the plaintiffs’ response by December 19. We expect the Court may even reach a decision this week.
The accelerated timetable may add another reason to continue gathering the information necessary to complete the CTA filings in 2024. Some clients have already decided to file now, despite the currently-in-force injunction.
For questions about this update, please contact Russ Hansen or any member of Prince Lobel’s Business Transactions Group.