There has been a recent, significant development regarding the Corporate Transparency Act (CTA). On March 1, 2024, the U.S. District Court for the Northern District of Alabama issued a significant ruling in the case of Nat’l Small Bus. United v. Yellen, No. 522-cv-01448-LCB (N.D. Ala. 2022). A copy of the decision is available at this link.
The court declared the CTA unconstitutional on the grounds that it exceeds the Constitution’s limits on Congress’ power. Specifically, the CTA was found to lack a sufficient nexus to any enumerated power, rendering it unnecessary and improper for achieving Congress’ policy goals.
We are currently reviewing the court’s decision and assessing its impact on business entities’ reporting obligations.
Next Steps:
- Stay Informed: Keep an eye on our future communications for updates and further instructions.
- Document Retention: Continue to maintain records related to your entity’s beneficial ownership information and any changes to it, as disclosure may be required in the future if the decision is overturned.
- Legal Consultation: If you have any immediate concerns or questions, please feel free to reach out to us.
We remain committed to assisting you during this evolving situation. Should you have any inquiries or require clarification, do not hesitate to contact us.
