U.S District Court Declares CTA Unconstitutional
On Friday March 1, 2024, the U.S. District Court for the District of Alabama declared the Corporate Transparency Act (CTA) unconstitutional. In the case of National Small Business Association v. Yellen (Case No. 5:22-cv-01448) [1], initiated by the National Small Business United, the challenge was against the CTA’s mandate for small businesses to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).
The ruling has the effect of suspending all BOI (Beneficial Ownership Information) filing requirements for now, all enforcement actions, and all compliance concerns including questions of “practicing law without a license.” Experts believe the ruling will be appealed, probably to the Supreme Court, so this is a temporary filing requirement suspension until a final appeal is exhausted. Voluntary filing appears to still be allowed if for some reason a client desires to file. For those that followed Taxspeaker’s advice to “wait until late October” this should make you feel better!
Click here to access this article from TaxSpeaker.
Blog by Kim Storen, EA – Tax Services Manager
Learn more about Kim and the rest of the Storen Financial team here.