On December 26, 2024, the United States Court of Appeals for the Fifth Circuit vacated its December 23 stay that had temporarily restored enforcement and deadlines for the Corporate Transparency Act (CTA) and its Reporting Rule. This decision halts enforcement of the CTA (again) and maintains the district court’s nationwide injunction while the appellate court’s merits panel considers the substantive constitutional arguments on an expedited basis. FinCEN has updated their website to reinstate the “voluntary filing” language and continues to accept filings.

Any of the following could reinstate the stay and enforcement of the CTA:

1. Expedited Merits Argument: Request an even faster timeline for oral arguments and the issuance of a decision on the merits. A favorable ruling on the appeal would automatically override the vacate order and allow the CTA to proceed.
2. Motion for Reconsideration by the Fifth Circuit: The government could file a motion for reconsideration with the Fifth Circuit merits panel, arguing that vacating the stay jeopardizes significant public interests, such as combating financial crimes and protecting national security.
3. Petition to the U.S. Supreme Court: If the Fifth Circuit does not reverse the vacate order, the government could petition the U.S. Supreme Court for an emergency stay. The petition should emphasize the urgency of enforcing the CTA, its compliance with constitutional requirements, and the risks of delaying its implementation.