On December 18, 2024, Couch White, LLP filed an amicus curiae (friend of the court) brief on behalf of Associated General Contractors of America, Inc., Associated General Contractors of New York State, LLC, and The Business Council of New York State, Inc. in connection with an appeal regarding the Corporate Transparency Act (“CTA”) pending in the United States Court of Appeals for the Fifth Circuit, case number 24-40792, Texas Top Cop Shop, Inc., et al. v. Merrick Garland, Attorney General of the United States, et al.

On December 3, 2024, a ruling by the United States District Court for the Eastern District of Texas has halted enforcement of the CTA by granting a nationwide preliminary injunction.  While the injunction is in place, companies are currently not obligated to comply with the CTA’s reporting requirements, but the government has appealed the nationwide injunction, and is seeking an emergency stay of the injunction, to the Fifth Circuit, keeping the future of the CTA in question. Read more here.

The amicus curiae brief was submitted in opposition to the government’s emergency stay application, which, if granted, would reinstate the reporting requirements of the CTA and require businesses to file a beneficial ownership information report by January 1, 2025.  The brief argues how granting a stay would cause irreparable harm to businesses due to the non-recoverable costs associated with compliance, the potential for significant financial and criminal penalties for noncompliance, and the significant burden that would be caused by springing back the reporting deadline on such short notice.

It is anticipated that the Court will issue a Decision on the government’s application for a stay in the coming days. If you have any questions regarding the amicas curiae brief, please contact Charles Carluccio, Esq. (ccarluccio@couchwhite.com). Please see the full amicas curiae brief here.