CTA: NOT THE WAY

New FAQs And Legal Updates Impact Embattled New Company Reporting Law

The Corporate Transparency Act—or CTA—requires reporting companies to file reports with the Financial Crimes Enforcement Network (FinCEN). FinCEN has been rolling out guidance, including new FAQ information. And, the CTA has been challenged in court. Here’s what you need to know.

Corporate Transparency Act: Where It Stands & Lessons Learned

With some exceptions, companies should assume they need to report beneficial ownership.

Federal District Court Rules Corporate Transparency Act Unconstitutional, Only Enjoins Actions Against Plaintiffs: What's Next, Given You Weren't A Plaintiff?

Given a $500.00 per day penalty for non-compliance, it remains prudent practice to continue to abide by the reporting requirements set forth under the CTA until additional guidance becomes available.

California Senate Passes State's Version Of Corporate Transparency Act

Under SB 1201, BOI for in-scope companies would be published in a publicly available database. In contrast, the CTA limits access to BOI to certain governmental and supervisory entities.

Treasury Department Pushes Back Against State Efforts to Dissolve CTA

The states, led by West Virginia, have expressed concern that the CTA overreaches because it “takes an unprecedented swipe at the quintessentially state-controlled area of corporate law.”

FinCEN Adds to FAQs on Compliance With Ownership-Disclosure Rule

*Subscription required. A Treasury Department unit added to its list of questions and answers Monday on what companies should do to comply with new requirements to disclose more about their ownership.

Case: Federal District Court Finds Corporate Transparency Act is Unconstitutional (N.D. Ala.)

*Subscription required. A federal district court found the Corporate Transparency Act (CTA) is unconstitutional, entering a declaratory judgment for Plaintiffs and permanently enjoining the government from enforcing the CTA against Plaintiffs.

Democrats push back against Corporate Transparency Act ruling

Congressional Democrats are urging the Eleventh Circuit to resurrect a law for combating money laundering after a federal court in Alabama called the statute unconstitutional.

FinCEN Notice: Corporate Transparency Act Will Continue to Be Implemented

*Subscription required. While litigation is ongoing in the case of Nat’l Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala. 2024), FinCEN will continue to implement the Corporate Transparency Act as required by Congress, while complying with the court’s order, FinCEN stated.

The Corporate Transparency Act - Case Law Update and Determining Beneficial Owners

Federal District Court Case Rules the CTA Unconstitutional – But Most Companies Still Must Comply

National Community Pharmacists Association

NCPA joins trade orgs calling for Congress to repeal Corporate Transparency Act

Corporate transparency: New federal law imposes reporting requirements on some businesses

*Subscription required. Small business here. Had no idea. Just had to research and find the link to report.

Republicans Float Bill to Repeal Corporate Transparency Act

A group of Congressional Republicans introduced a bill to repeal the Corporate Transparency Act of 2021, citing much-criticized requirements in the law for businesses to report ownership information.

House Small Business Committee hearing Under the Microscope: Examining FinCEN's Implementation of the CTA

Nearly half of small business owners so they had no idea what the Corporate Transparency Act is and had never heard of the government agency FinCEN. And suddenly, they are getting something in the mail asking for personal information with the threat of massive fines if they do not comply.

FinCEN Says Access to Company-Owner Info to Start This Spring

*Subscription required. Federal agencies and others who plan to use newly disclosed information on companies’ ownership will start to get access to the information this spring, a Treasury Department unit said Thursday.

US Seeks to Revive Corporate Transparency Law Ruled an Overreach

*Subscription required. US officials pushed an appeals court to resurrect an anti-money laundering statute after it was invalidated for exceeding Congress’ power to regulate commerce.

AICPA: BOI ruling confuses businesses; enforcement should be delayed

The AICPA and over 50 state CPA societies have written to the Treasury secretary and the director of the Financial Crimes Enforcement Network (FinCEN) asking that enforcement of beneficial ownership information (BOI) reporting requirements be suspended until one year after court cases have been resolved.

CTA puts new reporting requirements on farmers

The Corporate Transparency act requires small business entities to file online reports disclosing information about their beneficial owners.

Treasury Stares Down Another Challenge To CTA After Michigan Plaintiffs File Suit

A second lawsuit challenging the Corporate Transparency Act (CTA) has been filed—this time, in a Michigan court. Small businesses are pushing back, citing compliance costs, estimated to be $21.7 billion in 2024.

SBAM Taking Legal Action Against Corporate Transparency Act

The Small Business Association of Michigan is taking legal action against the invasive and unconstitutional Corporate Transparency Act

Corporate Transparency Act: Steps To File An Initial BOIR

The steps in the BOIR filing process outlined below require detailed and thoughtful analysis of how the often-complex CTA rules apply to an entity’s unique facts and circumstances. Familiarity with the CTA's regulations is necessary to properly comply with BOIR obligations.

Department of Treasury Appeals Alabama Corporate Transparency Act Decision

The lower court’s decision, previously covered by Butler Snow here, determined that the CTA does not fall within Congress’s enumerated powers and is therefore unconstitutional.

U.S. District Court: The Corporate Transparency Act is Unconstitutional…for Some Businesses

The Final Rule, published by the Financial Crimes Enforcement Network (“FinCEN”) on September 30, 2022, was challenged just six weeks later when Plaintiffs Isaac Winkles and the National Small Business Association (“NSBA”) filed suit in the United States District Court for the Northern District of Alabama alleging that Congress lacked authority under the Constitution to enact the CTA’s mandatory disclosure requirements.

Exercise Caution in Corporate Transparency Act Compliance Matters

Threat actors never miss an opportunity to use recent events to infect computer systems or quickly and easily gather personal information. The Corporate Transparency Act (“CTA”) is just such an opportunity and businesses and individuals subject to the act need to be wary.

Court Finds Corporate Transparency Act Unconstitutional and Unenforceable as to NSBA Members

On March 1, 2024, the U.S. District Court for the Northern District of Alabama ruled that the Corporate Transparency Act (“CTA”) is unconstitutional.[1] The CTA requires many U.S. entities to disclose their individual beneficial owners in a report filed with the U.S. Treasury.

Condo Adviser: Corporate Transparency Act imposes reporting requirements on community associations

Confusion caused by an unconstitutional and poorly written law.

Corporate Transparency Law Challenged Again, This Time in Maine

A Maine resident is suing the Treasury Department, arguing that the Corporate Transparency Act and its beneficial ownership requirements are unconstitutional.

Small biz advocacy group wins court challenge against the Corporate Transparency Act

The National Small Business Association has successfully challenged a law designed to combat money laundering but that small businesses contend is too burdensome.

Government Files Notice Of Appeal After Corporate Transparency Act Deemed Unconstitutional

After a U.S. District Court ruled that the Corporate Transparency Act was unconstitutional, the government is appealing, potentially setting up a showdown in the Supreme Court.

Biden administration appeals ruling blocking anti-money laundering rules

The Biden administration on Monday appealed a federal judge’s ruling that blocked Treasury rules intended to crack down on anonymous shell companies, escalating the legal battle over a years-old anti-money laundering law.

NSBA Response to DOJ Appeal of CTA Ruling

“The federal government had no choice but to appeal. We are glad that it did...."

FinCEN pauses certain BOI reporting due to court decision

The Financial Crimes Enforcement Network on Monday announced it would pause collecting beneficial ownership information from certain individuals and businesses in response to a court ruling.

Small business reporting requirement found unconstitutional by Alabama federal judge

In a blow to the Biden administration’s effort to increase corporate transparency, an Alabama federal district judge has ruled that the Treasury Department cannot require small business owners to report details on their owners and others who benefit from the business.

Small business reporting requirement found unconstitutional by Alabama federal judge

U.S. District Judge Liles C. Burke decided late Friday that the Corporate Transparency Act, a landmark U.S. anti-money laundering law enacted as part of the National Defense Authorization Act for fiscal year 2021, is unconstitutional on the grounds that Congress exceeded its powers in enacting the law — and so the rulemaking stemming from it is unlawful.

Corporate Transparency Act Hits a Snag

On March 1, the US District Court in Northern Alabama ruled that the “Corporate Transparency Act is unconstitutional because it exceeds the Constitution’s limits on Congress’ power.”

Judge Strikes Down Law Requiring Corporate-Ownership Disclosure

A U.S. District Judge in Alabama sided with a small business group, saying the Corporate Transparency Act was unconstitutional.

Judge Rules in Favor of NSBA in CTA Lawsuit

A clear victory for law-abiding small-business owners across the U.S.

Judge’s Ruling Sets Back Law Meant to Fight Money Laundering

An Alabama judge barred the government from collecting certain company ownership data to help the Treasury Department identify money launderers, and called the effort a case of congressional overreach.

Corporate Transparency Act Is Unconstitutional, Judge Rules

A federal court in Alabama has ruled that a law requiring companies to report extensive stakeholder ownership information to the government is unconstitutional.

U.S. Corporate Transparency Act: CTA is Declared Unconstitutional in U.S. District Court Case

The Corporate Transparency Act has been declared unconstitutional.

Federal Court Rules New Company Reporting Law Is Unconstitutional

Months after the Corporate Transparency Act—or CTA—went into effect, a federal judge in Alabama has found it unconstitutional.

Small biz must be alert to new rule

Operators of some small businesses here and throughout the rest of the country could be facing some unpleasant times if they do not familiarize themselves — and take steps to comply — with a new federal disclosure rule that took effect Jan. 1.

New filing law targets LLCs, shell companies

Some lawyers say they are carrying the brunt of marketing a new law that took effect Jan. 1.

Small businesses must be alert to new rule

Operators of some small businesses here and throughout the rest of the country could be facing some unpleasant times if they do not familiarize themselves — and take steps to comply — with a new federal disclosure rule that took effect Jan. 1.

Navigating new waters: The Corporate Transparency Act’s implications for small businesses

The new reporting requirements could cost small businesses, including those in the irrigation industry, more than $5 billion total nationwide.

Majority of Small Business Owners Have Not Filed CTA Paperwork

In line with NSBA membership, a majority of small-business owners have yet to file their beneficial ownership reports now required under the Corporate Transparency Act.

NSBA Member Op-Ed - Guest opinion: New federal government mandate may affect small business owners

This year small businesses around the country, and right here in Alabama, have a new regulation to follow that I bet most of you have never heard of: beneficial ownership information reporting.

NSBA PRESS | NSBA Urges Lawmakers to Repeal the Corporate Transparency Act

Small businesses should not pay the price for the country's efforts to stem money laundering. #CTA #NotTheWay

Business group sues over new corporate ownership database

"...small business owners are “hugely concerned” about their private information being shared with the government."

Small Business Interest Group Challenges CTA’s Constitutionality

“The CTA is nothing more than a first salvo in a campaign to transfer responsibility from the very institutions...."