Enforcement of the Corporate Transparency Act (CTA) has been paused again. The nationwide preliminary injunction that enjoined enforcement of the CTA is back in effect.
Three days after a motions panel of the Fifth Circuit Court of Appeals allowed enforcement of the CTA to continue, a separate merits panel of the Fifth Circuit reversed the motions panel’s decision. In its order pausing CTA enforcement, the merits panel stated that, “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.”
The case remains before the Fifth Circuit Court of Appeals, as the plaintiffs have requested that their petition be heard before the full court. While litigation continues, the federal government is prohibited from enforcing the CTA.