WASHINGTON, D.C. (Dec. 23, 2024) – The National Federation of Independent Business (NFIB) is extremely disappointed with today’s decision by the United States Court of Appeals for the Fifth Circuit in the NFIB’s lawsuit against the Corporate Transparency Act (CTA), Texas Top Cop Shop, Inc., et al. v. Garland et al. Earlier this month, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction in the case, blocking the U.S. Treasury Department from enforcing the CTA. Today’s decision reversing this preliminary injunction allows the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to enforce the CTA and its beneficial ownership information (BOI) reporting requirements while our litigation is ongoing.

“As a result of this decision, small business owners must scramble to comply with the reporting requirements of this egregious law. “Imposing a January 1 compliance deadline will create massive chaos for our nation’s small businesses,” he said Beth Milito, executive director of NFIB’s Small Business Legal Center. “In granting the injunction, the district court correctly recognized that the BOI reporting requirements would have devastating consequences for small business owners. Make no mistake, the NFIB is already working to quickly appeal this terrible decision and give our main streets a reprieve from this harmful mandate.”

More than 32 million small businesses across the country will once again be subject to this onerous regulation, including the nearly 300,000 NFIB member businesses represented in this lawsuit. NFIB supports the Repeal of the Big Brother Overreach ActLegislation that would repeal the CTA and permanently exempt small businesses from beneficial ownership requirements.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country, as well as before the U.S. Supreme Court.