The Corporate Transparency Act (CTA), a landmark piece of legislation aimed at enhancing transparency and combating illicit financial activities, has been declared unconstitutional by a U.S. District Judge in Alabama. The Court granted the National Small Business Association’s motion for summary judgment declaring the CTA unconstitutional because it “exceeds the Constitution’s limits on the legislative branch.”
The Treasury is likely to file an appeal to this holding, and until there is a definitive final decision, the enforcement of the CTA remains uncertain.
We will continue to provide updates as developments in the case unfold.
