The Fifth Circuit Court of Appeals reversed itself late yesterday and is holding the district court’s nationwide injunction in place for now.
This means the Corporate Transparency Act (CTA) – and its requirement that small businesses file BOI (business owner information) with FinCEN – is enjoined until the appeal is heard.
Specifically, the appeals court held late on December 26, 2024:
The merits panel now has the appeal, which remains expedited, and a briefing schedule will issue forthwith. However, in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments, that part of the motions-panel order granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and the Reporting Rule is VACATED.
Bottom line: until or unless the courts decide differently, United States small businesses aren’t required to comply with the CTA’s BOI reporting requirements.
As one publication described it, this is a bit like whiplash for the small business community. Let’s hope this ping pong game is halted for now.
Of course, we suspect there’ll be more soon, since the Fifth Circuit will expedite the appeal. On the other hand, once the Trump Administration is in place, there’s a chance the federal government may drop its appeal. It’s too soon to speculate, however.
If you’re not too dizzy already, allow us to wish you a Happy New Year from all of us at The Coppola Firm!
