In a significant legal development, the U.S. District Court for the Northern District of Alabama has ruled the Corporate Transparency Act (CTA) unconstitutional. In doing so, the Court asserted that Congress had acted outside its authority in mandating disclosure requirements for new and existing corporate entities.
This decision comes from a case brought by the National Small Business Association among others, putting a halt to CTA enforcement against the plaintiffs to the case. The Department of Justice is likely to appeal this decision. We at Hellmuth & Johnson advise that all non-exempt reporting companies continue filing reports with FinCEN until further notice.
This ruling suggests further challenges ahead for the broader application and enforcement of the CTA. For more information on the Corporate Transparency Act, please contact one of these Hellmuth & Johnson attorneys: Pedro Herrera, David Hellmuth, Darbie Tamsett, or Blake Nelson.