Visit the CTA Reference Center to receive the latest updates on the Corporate Transparency Act. Click here!
Visit the CTA Reference Center to receive the latest updates on the Corporate Transparency Act. Click here!
Submitted by UCS on March 5, 2024
What does this mean for the future of Beneficial Ownership Information Reports?
On March 1, 2024, a U.S. District Judge in Alabama issued a judgment declaring that the Corporate Transparency Act (CTA) is unconstitutional because it exceeds the Constitution’s limits on Congress’ power. Further, FinCEN is permanently enjoined from enforcing the CTA against the plaintiffs (National Small Business Association “NSBA”) in that case.
It should be noted that the ruling does not apply to business owners who are not affiliated with the NSBA. The Treasury department retains the freedom to carry on with the implementation of the CTA and enforce it against other parties at this time.
It is expected that the Treasury department will file an appeal against the ruling. As previously stated, the court’s order specifically prohibits enforcement against the NSBA plaintiffs only.
As a result, UCS will continue to serve as a Company Applicant and furnish our FinCEN identification number for all new formation/incorporation filings that are submitted through our office.
If you have any questions on BOI reporting, feel free to contact us at cta@unitedcorporate.com.
UPDATE: On March 11, 2024, the Justice Department on behalf of the Treasury department filed an appeal against the ruling. As previously stated, the court’s order specifically prohibits enforcement against the NSBA plaintiffs only. As a result, UCS will continue to serve as a Company Applicant and furnish our FinCEN identification number for all new formation/incorporation filings that are submitted through our office. Click here for additional details.