On March 1, 2024, a U.S. District Judge in Alabama issued a judgment declaring that the Corporate Transparency Act (CTA) is unconstitutional because it exceeds the Constitution’s limits on Congress’ power. Further, FinCEN is permanently enjoined from enforcing the CTA against the plaintiffs (National Small Business Association "NSBA") in that case.
It should be noted that the ruling does not apply to business owners who are not affiliated with the NSBA. The Treasury department retains the freedom to carry on with the implementation of the CTA and enforce it against other parties at this time.
It is expected that the Treasury Department will file an appeal against the ruling. As previously stated, the court's order specifically prohibits enforcement against the NSBA plaintiffs only.
If you have any questions on the CTA or BOI reporting requirements, feel free to contact us at 800.952.5696 clascta@clasinfo.com, or visit the CLAS CTA Reference Center here.