Fifth Circuit Reinstates Nationwide Injunction Against CTA Enforcement

Published: Dec 29, 2024
By: Sarah E. Adkisson
Topics: Tax
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After a brief hiatus, the nationwide injunction blocking enforcement of the Corporate Transparency Act (CTA) is back in effect. The Fifth Circuit vacated its own order to stay the injunction on December 26, 2024. Accordingly, reporting companies are currently not required to report their beneficial ownership information by the January 1, 2025, deadline.

On December 23, 2025, the Fifth Circuit granted the Department of Justice’s request to stay the nationwide injunction against enforcing the Corporate Transparency Act (CTA). That order is no longer in effect after the action to vacate the order.

The Department of Justice (DOJ) requested the Supreme Court stay the nationwide injunction on December 31, 2024. The Supreme Court has set a deadline of January 10, 2025, for the plaintiffs to respond to that request. Justice Alito is the Justice considering the government’s request, and he may grant or deny the request to stay the injunction on his own. The DOJ also requested the Supreme Court to treat its request as a petition for writ of certiorari before judgment, meaning it is requesting the Supreme Court to take up the constitutional question before the Fifth Circuit issues its decision.

As uncertainty about the CTA reporting requirements continues, reporting companies should be prepared for the possibility that the CTA will be reinstated. Companies may have a short deadline to comply if the Supreme Court stays the injunction.

The injunction in question was put in place on December 3, 2024, by a federal judge in the Eastern District of Texas. The Fifth Circuit has not yet ruled on the constitutional question at hand.

Our professionals are following the CTA very closely. Watch for further information. 

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Sarah E. Adkisson

Sarah E. Adkisson, Senior Manager of Tax Publishing, with nearly a decade of tax experience, provides invaluable thought leadership support to the firm's national tax team through her clear and concise articulation of complex tax topics.

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