GOVERNMENT RESPONDS TO RULING ON CORPORATE TRANSPARENCY ACT

On March 1, 2024, the US District Court for the District of Alabama declared the Corporate Transparency Act unconstitutional in the case of National Small Business Association v. Yellen (Case No. 5:22-cv-01448). The Corporate Transparency Act (“CTA”) became effective January 1, 2024 and required all applicable businesses to file a report with the federal government. On March 11, 2024, the U. S. Department of the Treasury responded to the ruling with a notice indicating that the Government was appealing the ruling. The notice further stated that, except for the parties that were involved in the court’s ruling, all other applicable companies are still required to comply with the CTA and file their reports. For businesses in existence before January 1, 2024 that are not subject to one of the exceptions, the report is due by January 1, 2025. For newly created applicable businesses in 2024, the initial report is due 90 days from entity creation.