Update – Compliance with the Corporate Transparency Act of 2020


As you may have heard, on March 1, 2024, the District Court for the Northern District of Alabama ruled that the Corporate Transparency Act of 2020 (“CTA”) is unconstitutional, and the U.S. Treasury Department is permanently enjoined from enforcing the CTA, but only against the two named plaintiffs in that case (Issac Winkles and National Small Business United dba National Small Business Association). National Small Business United, d/b/the National Small Business Association, et al. v. Janet Yellen, Case No. 5:22-cv-01448 (N.D. Ala. March 1, 2024). If you desire to read the court’s opinion, here is the link. In response to this decision, FinCEN issued a notice on March 4, 2024, confirming that it will not enforce the CTA against the named plaintiffs in this case.

It is likely that this case will be appealed by the government. However, in the meantime, the CTA continues to apply to all other entities subject to the CTA’s reporting requirements. As a reminder, all reporting companies formed in 2024 must file within 90 days after the formation date, and all reporting companies formed before 2024 must file by December 31, 2024.

If you have any questions, please contact Edmund G. Kauntz at [email protected] or Nathaniel D. Tucker at [email protected] or via telephone at 216-292-5807.