On March 11, 2024, the U.S. Department of Justice filed a notice of appeal with the Eleventh Circuit to appeal the decision by the U.S. District Court for the Northern District of Alabama (Northeastern Division) that held that the Corporate Transparency Act (the "CTA") is unconstitutional. The lower court's decision, previously covered by Butler Snow here, determined that the CTA does not fall within Congress's enumerated powers and is therefore unconstitutional.
Because the lower court's decision is limited to only plaintiffs in that matter, all other parties subject to the CTA should prepare to comply with the law. Absent further developments, reporting entities formed in 2024 should register with FinCEN within 90 days of formation, and reporting entities formed prior to 2024 should continue to be prepared to register with FinCEN by December 31, 2024.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
