Written by James A. Carolan, CWS®, CTFA | Sr. Estate Planning Attorney for EWM Legal Solutions
In a stunning development in the Texas Cop Shop case the Fifth Circuit Court of Appeals took the amazing action of reversing itself on December 26, 2024.
In a decision issued that day in Texas Cop Shop, Inc. v. Garland, No. 24-40792, 204 WL 5203138 (5th Cir. Dec. 23, 2024) another order was entered that stated:
“The merits panel now has the appeal, which remains expedited, and a briefing schedule will issue forthwith. However, in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments, that part of the motions-panel order granting the Government’s motion to stay the district court’s preliminary injunction enjoining enforcement of the CTA and Reporting Rule is VACATED.” (emphasis added)
The reporting requirements continue to “ping-pong” with the district court issuing the nationwide preliminary injunction on December 3, 2024.
Then the emergency appeal and motion by the government to the Fifth Circuit and the court putting the case on a fast-track for hearing.
The Fifth Circuit then granting the emergency motion by the court’s motions panel and issuing a stay of the injunction on December 23, 2024 and reinstating the reporting requirements. FinCEN extended the deadline to January 13, 2025, given the uncertainty created by the court actions.
Then, 3 days later, on December 26, 2024, the Fifth Circuit issued another order reversing itself and putting the nationwide injunction back in force.
At this time FinCEN cannot enforce the filing requirements for the CTA. But it is obvious that FinCEN does not plan to back off enforcement and you should be ready to file it at short notice. We will continue to monitor the progress of this case. The situation could change rapidly.
On January 3, 2025, the 119th Congress will be sworn in and begin session. We also have a change of administration on January 20, 2025. There has been no word from the incoming Trump Administration on its position on the CTA.
Where to Start?
Contact me at EWM Legal Solutions. I’m here to assist you in these kinds of legal matters, helping you protect what you care about most.
James A. Carolan, CWS®, CTFA
Sr. Estate Planning Attorney
Executive Wealth Management and EWM Legal Solutions are separate but affiliated companies. Executive Wealth Management (EWM) is a Registered Investment Advisor with the Securities and Exchange Commission. Reference to registration does not imply any specific level of qualification or skill. Investment Advisor Representatives of EWM offer Investment Advice and Financial Planning Services to customers located within the United States.
