News & Insights

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.

The Corporate Transparency Act (“CTA”) went into effect January 1, 2024. Its main aim is to strengthen corporate entity structures and ownership transparency in order to combat money laundering and tax evasion. All entities formed through any Secretary of State must report ownership details, unless they are exempt. Accurate reporting is of critical to avoid potential civil and criminal penalties. Make sure you are well-informed and compliant with this new reporting requirement.

Financial Crimes Enforcement Network (FinCEN) announced that it is extending the deadline for certain “reporting companies” to file initial Beneficial Ownership Information (BOI) reports under the Corporate Transparency Act (CTA).

The Corporate Transparency Act (“CTA”) was passed into law on January 1, 2021, and goes into effect on January 1, 2024. The CTA requires companies to provide information about the ownership and control of entities operating in the United States.