On March 1, 2024, a federal district court judge in the Northern District of Alabama sided with the plaintiff (National Small Business Association) and held the Corporate Transparency Act (CTA) unconstitutional. On March 4, 2024, FinCEN issued a press release stating that FinCEN is not enforcing the CTA against the plaintiffs in that action which includes entities which are members of the NSBA as of March 1, 2024. In other words, the decision only protects those specific parties.
It is anticipated that the Justice Department will appeal this decision and seek to pause its effects pending appeal. The appeals process to the 11th Circuit Court of Appeals can be lengthy and it is expected that similar lawsuits challenging the CTA will be filed and may have different outcomes.
In the meantime, we recommend that clients continue to gather the information necessary to complete the filings which are due December 31, 2024 for entities formed in prior years. It appears that the safer course of action for entities formed in 2024 is to comply with any earlier filing requirements generally (90 days within the date of creation).
If you have questions about compliance with the CTA, contact an experienced Buckley Fine attorney today at 847-381-0011 or email us at attorneys@buckleyfinelaw.com.