Corporate Transparency Act updateAn Alabama federal court has issued a declaratory judgment and ruled that the Corporate Transparency Act (“CTA”) exceeds constitutional limits. FinCen, the government authority for the CTA, is barred from enforcing CTA requirements on the plaintiffs (those who sued), namely Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association.

It is widely expected that there will be an appeal of the case and more law suits challenging the constitutionality of the CTA will be forthcoming.

This ruling was specific to the plaintiffs.

We recommend you continue to comply with your CTA reporting obligations in the interim. Don’t risk the potential of a $500/day penalty for non-compliance.

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