Corporate Transparency Act Guidelines
Date: April 1, 2024
On March 1, 2024, in the case of National Small Business United, Inc. et al. v. Janet Yellen (Case No. 5:22-cv-1448-LCB), a U.S. district court judge in the Northern District of Alabama ruled that the CTA is unconstitutional because it cannot be justified as an exercise of Congress' powers stated in the U.S. Constitution, specifically either its power to regulate foreign affairs and national security, regulate interstate commerce, or levy taxes. The court ordered the U.S. government not to enforce the CTA against any member of the National Small Business United trade association as of the order date, which was reportedly 65,000 people. The United States has appealed the order, and FinCEN has posted this notice: “While this litigation is ongoing, FinCEN will continue to implement the Corporate Transparency Act as required by Congress, while complying with the court’s order. Other than the particular individuals and entities subject to the court’s injunction, as specified below, reporting companies are still required to comply with the law and file beneficial ownership reports as provided in FinCEN’s regulations.”
During March 2024, similar constitutional challenges to the CTA have been filed in U.S. District Courts located in Ohio, Maine and Michigan.
Please click on the image below to see the one-page overview of the Corporate Transparency Act, its reporting requirements and deadlines.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.