Reinstatement of the nationwide injunction over the Corporate Transparency Act (CTA) means, once again, no BOI reports are due...for now.
FOR IMMEDIATE RELEASE
Friday, Dec. 27, 2024
Contact:
Molly Day
202-552-2904
CTA Confusion Continues: Nationwide Injunction is Back on – No BOI Reporting for Now
Washington, D.C. – On late Thurs., Dec. 26, the Fifth Circuit Court of Appeals reversed an order in a federal case against the Corporate Transparency Act (CTA).
Previously, the courts granted a stay of a preliminary injunction that barred the Dept. of the Treasury's Financial Crimes and Enforcement Network from enforcing Beneficial Ownership Information (BOI) reporting due under the CTA.
Long story short: the nationwide injunction that provides a delay of the CTA is back on...for now.
This is the fifth major movement on the CTA in just a month - the first being enactment of a nationwide temporary injunction, followed by failed efforts on Capitol Hill to delay the CTA, arriving then at an appeal of the injunction, the stay of that injunction, and, most recently, reinstatement of the initial nationwide injunction over the CTA this week.
Specifically, in a series of moving parts, the Dec. 23 order granted a motion to expedite appeal of the initial preliminary nationwide injunction over the CTA. As of December 27, the merits of the case have yet to be heard; briefs are now due in February, and the case is calendared for oral arguments on March 25, 2025.
Below is a statement from NSBA President and CEO Todd McCracken on the latest over the CTA:
“While we absolutely are pleased that the BOI enforcement delay is back on, this ping pong in the courts highlights why it is critical for Congress to repeal this unwelcome and unconstitutional law. NSBA is still awaiting a judgement from the Eleventh Circuit Court of Appeals in our lawsuit—the first one filed, so, more changes could be ahead for Small Businesses.
“This uncertainty is beyond frustrating for NSBA’s members and the millions of Small Businesses we represent. Since the beginning, NSBA has warned against the CTA, penalties for which could carry fines of up to $591 per DAY and up to two years of jail time, even for those well-intending Small-Business owners who may unintentionally fail to comply through the fog of the continued confusion surrounding the status of this law.
“I cannot stress enough what a major problem this back-and-forth on the status of the CTA has become, and I'd like to underscore the massive uncertainty it is creating for the millions of Small Businesses across this country. This latest action from the courts will provide some breathing room, but how much is anybody’s guess.
“NSBA will continue fighting our separate lawsuit alongside this reinstated nationwide injunction over the CTA, additionally pushing Congress to act on the CTA through legislation. At this point, anything less than full repeal is a disservice and source of avoidable instability to America's Small Businesses - the core of our communities, the foundation of our economy, and the employers of our future.
To learn more about our efforts over the CTA, as well as how this law unduly affects Small Business, visit NSBA’s CTA Resource page.
Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s Small-Business owners. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsbaadvocate.org, and follow us at @NSBAAdvocate.
###