Robert Garner Published on CFO Simplified: What Business Entities Need to Know About the Corporate Transparency Act

Partner Robert Garner recently shared relevant information on the Corporate Transparency Act in an article published on CFO Simplified.

You can read the full article here: What to Know About The Corporate Transparency Act

For additional resources regarding the CTA, including compliance requirements, filing deadlines, and Beneficial Ownership Information Report instructions, please visit LP’s Corporate Transparency Act Resources.

NOTE: On March 1, 2024, the United States District Court for the Northern District of Alabama declared the federal Corporate Transparency Act (CTA) “unconstitutional because it exceeds the Constitution’s limits on Congress’s power.” We anticipate that the US Department of Treasury will appeal to the US Court of Appeals for the 11th Circuit. FinCEN indicated it will not enforce the CTA at this time against the plaintiffs in that action, namely, members of the National Small Business Association (as of March 1, 2024). Those individuals and entities are not required to report beneficial ownership information to FinCEN at this time. In FinCEN’s view, the CTA remains fully in force for everyone other than a direct or indirect participant in the case. In short, reports of the CTA’s death appear to be greatly exaggerated (at least for the moment). 

However, the court’s decision may prompt policymakers to revisit the CTA, now that its wide-ranging practical implications have become clearer since going into effect. Any legislative or regulatory relief will likely take months or years to develop, and we recommend continuing to comply with the CTA requirements. LP is monitoring this highly fluid situation, including whether other plaintiffs file similar lawsuits, and will provide updates on any judicial, regulatory, or legislative developments.