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🚨 Important Update: Corporate Transparency Act (CTA) Compliance Deadline 🚨 The Corporate Transparency Act (CTA) compliance deadline has been put on hold following a nationwide preliminary injunction. On December 3, 2024, U.S. District Judge Amos Mazzant ruled that the CTA and Financial Crimes Enforcement Network, US Treasury (FinCEN) Beneficial Ownership Information (BOI) Reporting Rule may be unconstitutional, staying the January 1, 2025, compliance deadline. What does this mean for businesses? While the government may appeal, the upcoming leadership change at the Department of Justice leaves the future of the reporting requirements for the CTA uncertain. What action should you take? We recommend continuing preparations for BOI filings but not filing them until further guidance is provided by the courts and regulators. Please note some state-level transparency laws may still apply, so those who have filed their BOI reports previously should be able to rely on those filings in order to maintain a good standing status with the FinCEN as well as assisting you with future reporting requirements. Goosmann Law Firm will continue monitoring updates and provide guidance as new developments unfold. Stay informed and contact us with any questions about compliance or what this means for your business! https://lnkd.in/gRDtgZvF #CorporateTransparencyAct #Compliance #LegalUpdates #GoosmannLaw

Updates on Corporate Transparency Act (CTA) from Bob Jennings at TaxSpeaker. Alabama courts have been busy. On Friday March 1, 2024, the U.S. District Court for the District of Alabama declared the Corporate Transparency Act (CTA) unconstitutional. In the case of National Small Business Association v. Yellen (Case No. 5:22-cv-01448) [1], initiated by the National Small Business United, the challenge was against the CTA's mandate for small businesses to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).   The ruling has the effect of suspending all BOI filing requirements for now, all enforcement actions, and all compliance concerns including questions of "practicing law without a license." Experts believe the ruling will be appealed, probably to the Supreme Court, so this is a temporary filing requirement suspension until a final appeal is exhausted. Voluntary filing appears to still be allowed if for some reason a client desires to file.

Here is an update about the CTA that I posted recently from Patrick MacQueen at Medalist Legal here in AZ: Judge Rules Corporate Transparency Act is Unconstitutional The fight for corporate transparency in the United States hit a bump in the road recently. On Friday, a federal judge in Alabama ruled the Corporate Transparency Act (“CTA”) is unconstitutional, siding with the National Small Business Association (“NSBA”) who argued the law oversteps Congressional authority. While this decision only affects a specific region and a specific set of plaintiffs and is likely to be appealed, it throws a temporary wrench into the implementation of the CTA and raises questions about its ultimate fate. What is the Corporate Transparency Act? Enacted in 2021, the CTA aims to combat financial crime by requiring certain businesses to disclose their beneficial owners, the individuals who ultimately own or control them. According to those that support the law, this information can be crucial for law enforcement in identifying and investigating potential money laundering, terrorist financing, and other illegal activities. What did the Alabama judge decide? The judge agreed with the NSBA's argument that the CTA oversteps Congress' power as outlined in the US Constitution. The NSBA argued that the law doesn't fall under established categories of federal power, such as regulating interstate commerce or managing taxes. What are the potential consequences of this ruling? While the Treasury Department has already collected information from over 100,000 businesses nationwide, this ruling casts doubt on the future of the CTA in Alabama and potentially other places where similar suits may follow. Some experts believe the government will appeal the decision and ultimately prevail, but the legal limbo creates administrative challenges and further delays in achieving full implementation of the law. What's next? It is important to remember that this is a limited decision with a specific regional impact. The legal battle surrounding the CTA is likely to continue, highlighting the ongoing debate about the balance between corporate transparency and individual privacy. We will provide information about further developments regarding the CTA's implementation and potential revisions as the legal process unfolds. Do you want to share your thoughts or have questions? You can email me at pmacqueen@medalistlegal.com.

Some news regarding the "Corporate Transparency Act." From the U.S. Chamber Earlier today (12/4/2024) a federal court in Texas halted the implementation of the Corporate Transparency Act’s (CTA) beneficial ownership reporting requirements. Holding that the CTA is likely unconstitutional, the court issued a preliminary injunction barring the government from enforcing the CTA and its reporting requirements against anyone. Prior to the ruling, small businesses that met certain criteria would have had to file reports with the Department of the Treasury by January 1, 2025, or risk fines and criminal penalties. The preliminary relief will remain in effect until the conclusion of legal proceedings, at which point the court may enter a permanent injunction. In the meantime, the government will likely appeal the preliminary injunction. Unless and until an appellate court overrules or narrows the injunction, no businesses are obligated to comply with the reporting requirements.

A Federal District Court held that the Corporate Transparency Act is unconstitutional, stating it “exceeds the Constitution’s limits on Congress’ power." The ban on the CTA's enforcement is limited to the NSBA and its 60,000+ members... Given the narrow nature of this summary judgment, unless the Treasury Department suspends enforcement of CTA for all 30+ million businesses that are obligated to file, CTA BOI reports will need to be filed by all of those tens of millions of businesses except for the less than 65,000 NSBA members to which the decision applies... Many believe that all reporting companies facing CTA deadlines should seriously consider filing, even if the Federal District Court's ruling covers them. Businesses that fail to file in time to meet their CTA deadlines are betting on the NSBA prevailing in the courts. Meanwhile, if the UST prevails, these businesses will potentially face significant civil fines, interest, and penalties, as well as possible criminal penalties, including jail time... https://lnkd.in/eJV-_eHh

Despite the court's decision, businesses should continue to comply with the Corporate Transparency Act’s reporting requirements. The government is expected to appeal. Kevin Granahan and Lauren Stahl explain the latest development in this alert. #CTA #FinCEN #businesscompliance

Northern District of Alabama rules Corporate Transparency Act unconstitutional, impacting NSBA members. While the fate of the CTA remains uncertain, Reporting Companies must stay vigilant amidst the legal limbo. Stay tuned for updates and read more from Matthew Way here: https://lnkd.in/ecBhjVXh #CTA #LegalUpdates #BusinessLaw

The Wall Street Journal has a good article on litigation that calls into question the #constitutionality of the #corporatetransparencyact (CTA). The #CTA requires #beneficialownership disclosures from a wide variety of businesses, including small businesses, #LLCs, etc. Certain businesses are exempt from the CTA requirement at issue in this case because of other preexisting reporting obligations such businesses have with various #federal regulatory agencies that achieve the same objectives of the law at issue. With that said, Judge Liles C. Burke's recent opinion in the #UnitedStatesDistrictCourtfortheNorthernDistrictofAlamaba held that the CTA is #unconstitutional because it “exceeds the Constitution’s limits on the legislative branch” and fails the “necessary and proper” test. For entities who are wrestling with coming into #compliance with the CTA and are assessing the potential impacts of this case on their obligations, there are a few important takeaways to keep in mind up front: 1) This case will almost certainly not be the last word on the CTA's constitutionality. The U.S. government will likely appeal to the Us Court Of Appeals 11th Circuit and may seek an interim stay of the ruling from both the trial and appellate courts. 2) The court's injunction is limited to the plaintiffs in this case and therefore may not provide any practical relief to the thousands of other businesses who are similarly situated to the plaintiffs in this case. Other "reporting companies" (who are not plaintiffs in this case) are still bound by the CTA and should continue to comply with it, unless exempt, until further notice. 3) The court's decision addresses the CTA's constitutionality at the federal level. It does not address state laws or proposals to create similar state level reporting obligations for businesses (e.g., New York). 4) This decision, even if upheld on appeal, will likely have limited if any impact on assessing the constitutionality of other recent Financial Crimes Enforcement Network, US Treasury proposals to require #investmentadvisers to satisfy new #AMLCFT reporting obligations. In short, the issues at play in this case are different. The District Court's Opinion is available here: https://lnkd.in/e-ftU7vq If you have any questions or would like to discuss further, please reach out to us at Capitol Asset Strategies. https://lnkd.in/eipzX7zG

Breaking News! A major court ruling has temporarily suspended the Corporate Transparency Act, affecting millions of America business owners who were preparing for the January 2025 reporting deadline. Here's what you need to know. Read our blog to learn more... https://lnkd.in/gTp2kamZ

📢 Update on the Corporate Transparency Act (CTA): What This Means for Businesses 📢 Last week, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction on the implementation and enforcement of the Corporate Transparency Act (CTA), finding that the Act likely extends beyond Congress’s constitutional powers. As a result, the obligation to comply with the CTA’s beneficial ownership reporting requirements is currently suspended. For now, companies are not required to file their beneficial ownership reports with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). This ruling is a significant development, creating uncertainty around the future of the CTA. The defense of the Act will ultimately rest with the incoming administration, and there is speculation that the Trump Administration may be less inclined to advance its enforcement. Businesses are now left in a holding pattern, and while compliance is on pause, it is crucial to stay prepared as the legal landscape could shift again pending appeals. The CTA, which was set to take effect on January 1, 2024, aimed to enhance transparency in corporate ownership to combat illicit financial activities. However, these recent legal challenges underscore the contentious nature of the Act and its potential implications for businesses nationwide. As we navigate this evolving situation, it’s important for companies to remain vigilant, monitor developments, and assess their compliance frameworks. What are your thoughts on this decision and its potential impact on transparency and governance in corporate America? Let’s discuss. 💬 #CorporateTransparencyAct #Compliance #Governance #LegalUpdates #Transparency #BusinessLeadership #CTA #GRC