by Kent “KAB” Brasseale, II and Heather Lobermann
What Did the Government File?
The federal government made several court filings last week in the two pending cases where nationwide injunctions were in place temporarily suspending CTA reporting. Unlike what many anticipated, these filings appear to indicate the federal government plans to pursue reinstatement of the reporting requirements. While this may change, the tenor of the government’s filings indicates otherwise.
In the Top Shop case (the case where SCOTUS lifted the nationwide injunction pending resolution in the lower courts on the merits), the government submitted its brief in advance of the March 25, 2025 hearing. The 70-page brief categorically disagrees with the lower court’s assertions that the CTA is unconstitutional and appears to take the position that the government plans to continue fighting for the implementation of the CTA.
In the Smith case (the case that SCOTUS has not yet ruled as to the nationwide injunction granted in early January 2025, thus allowing the injunction to remain in place), the government filed its intention to appeal the nationwide injunction. It also drafted its motion to stay the nationwide injunction pending appeal. The Smith court has ordered the plaintiffs to respond to the motion to stay the nationwide injunction by February 14, 2025.
What Might Happen if the Stay is Granted (i.e.; the CTA is held to be constitutional)?
The motion to stay the nationwide injunction provides information on what the federal government plans to do if the stay is granted, namely (1) extend the deadline to file to 30 days after the stay is granted, and (2) consider modifying the reporting requirements for “low-risk entities.” This latter component is not explained in much detail as to what would be deemed a “low-risk entity” or what sort of reporting requirement changes might be considered.
How Can KDDK Help Me?
KDDK will continue to monitor the status of the Corporate Transparency Act and will circulate information on substantive updates. If we can be of assistance and/or answer any questions you may have regarding the Corporate Transparency Act, please contact attorneys Kent “KAB” Brasseale, II at kbrasseale@kddk.com, Heather Lobermann at hlobermann@kddk.com, or by phone at (812) 423-3183.
For more information about the Corporate Transparency Act and how the status of the law has evolved through the courts, please see our prior blogs:
- Corporate Transparency Act: What Your Business Needs to Know
- Corporate Transparency Act and Reporting Rule Enjoined Nationwide
- Urgent Update: Corporate Transparency Act Nationwide Injunction Lifted – Reporting Required as Early as January 13, 2025
- Corporate Transparency Act Nationwide Injunction Reinstated
- Understanding the Status of the Corporate Transparency Act – U.S. Supreme Court Issues Decision on January 23, 2025
