[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.grossmcginley.com\/resources\/blog\/corporate-transparency-act-declared-unconstitutional\/#BlogPosting","mainEntityOfPage":"https:\/\/www.grossmcginley.com\/resources\/blog\/corporate-transparency-act-declared-unconstitutional\/","headline":"CORPORATE TRANSPARENCY ACT DECLARED UNCONSTITUTIONAL","name":"CORPORATE TRANSPARENCY ACT DECLARED UNCONSTITUTIONAL","description":"There has been a recent development that could impact the enforcement of the Corporate Transparency Act (\u201cCTA\u201d). […]","datePublished":"2024-03-05","dateModified":"2024-03-05","author":{"@type":"Person","@id":"https:\/\/www.grossmcginley.com\/resources\/author\/deb\/#Person","name":"Deb Faulkinberry","url":"https:\/\/www.grossmcginley.com\/resources\/author\/deb\/","identifier":46,"image":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2021\/02\/MGMT-Deb-Faulkinberry-150x150.jpg","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2021\/02\/MGMT-Deb-Faulkinberry-150x150.jpg","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Gross McGinley, LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2017\/10\/logopng-00436945-e1531508982151.png","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2017\/10\/logopng-00436945-e1531508982151.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2023\/08\/A-gavel-inside-a-maze.jpg","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2023\/08\/A-gavel-inside-a-maze.jpg","height":750,"width":750},"url":"https:\/\/www.grossmcginley.com\/resources\/blog\/corporate-transparency-act-declared-unconstitutional\/","about":["Blog"],"wordCount":205,"keywords":["Business Law","Corporate Transparency Act"],"articleBody":"There has been a recent development that could impact the enforcement of the Corporate Transparency Act (\u201cCTA\u201d).On March 1, 2024, U.S. District Court Judge Liles C. Burke (Northern District of Alabama) ruled that the CTA is unconstitutional because it \u201cexceeds the Constitution\u2019s limits on the legislative branch\u201d and fails the \u201cnecessary and proper\u201d test.This isn\u2019t the end, and actually, it\u2019s not even the beginning. It appears the injunction only applies to the plaintiffs in that case; the two members of the National Small Business Association who sued in November 2022, seeking a permanent injunction against the implementation of the CTA and reporting rules.At present, we have no direction as to whether the Federal government will continue to enforce the CTA against the 32 million other impacted small businesses that are not parties to the lawsuit, or what other impact this ruling will have on those business entities\u2019 obligation to continue to comply with the CTA\u2019s reporting requirements. So, while it appears to be \u201cbusiness as usual\u201d for any other business entity required to file with FinCEN, except for the two in Alabama, there will likely be developments over the coming weeks and months, and we will continue to closely monitor developments."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Resources","item":"https:\/\/www.grossmcginley.com\/resources\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Blog","item":"https:\/\/www.grossmcginley.com\/resources\/\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"CORPORATE TRANSPARENCY ACT DECLARED UNCONSTITUTIONAL","item":"https:\/\/www.grossmcginley.com\/resources\/blog\/corporate-transparency-act-declared-unconstitutional\/#breadcrumbitem"}]}]