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Important Legal Update

The Corporate Transparency Act

On March 1, 2024, a U.S. District Judge in Alabama ruled that the Corporate Transparency Act (CTA) is unconstitutional. The Constitution limits Congress’s authority, and the Court held that the CTA exceeded those limits. Accordingly, the Court ruled that the U.S. Treasury Department and FinCEN shall not enforce the CTA against the plaintiffs in that case. It is currently unclear as to the implications of this ruling against persons not party to that case or outside of Alabama. We expect the government to appeal the judgement. For the time being, the Court’s decision leaves the CTA in limbo as there will almost certainly be further developments. We encourage you to consult Wood + Lamping LLP’s Corporate Transparency Act attorneys with any questions. You can also read more in our recent legal update.

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News & Insights

A new federal law will require business entities to report their ownership information to the Financial Crimes Enforcement Network (FinCEN). On January 1, 2021, Congress enacted the Corporate Transparency Act (CTA) as part of the National Defense Authorization Act for 2021. The U.S. Department of the Treasury and FinCEN adopted Regulations implementing the CTA on September 30, 2023.