Corporate Transparency Act Update

Alabama Judge Rules on CTA and U.S. Treasury Responds

On March 1, 2024, a federal district judge in Alabama ruled in the case of National Small Business United v. Yellen that the Corporate Transparency Act (CTA) is unconstitutional. The ruling prohibits the government from enforcing the CTA against the plaintiffs in the case: the National Small Business Association (NSBA), members of the NSBA as of March 1, 2024, Isaac Winkles, and reporting companies for which Isaac Winkles is the beneficial owner or company applicant.

On March 11th, the U.S. Treasury issued a notice indicating that they are appealing the ruling to the U.S. Court of Appeals for the Eleventh Circuit. The notice also states that, other than the specific entities subject to the court’s ruling, reporting companies are still required to comply with the CTA and file beneficial ownership reports (BOI Reports) with FinCEN.

There has NOT been a nationwide injunction against enforcement of the CTA issued to date.

We will continue to provide BOI Report filing services to our clients while closely monitoring the appeals process.