This law imposes reporting requirements that raise privacy issues and noncompliance penalties.
This week, 51风流 and other business groups coordinated by the National Federation of Independent Business (NFIB) Legal Center jointly filed an in the U.S. Court of Appeals for the Eleventh Circuit in support of small business plaintiffs in this case (the National Small Business Association鈥擭SBA), which argues that the Corporate Transparency Act (CTA) is unconstitutional because it regulates beyond Congress鈥 legislative powers鈥. The law requires small businesses that file for incorporation through their state to report to the Department of Treasury鈥檚 Financial Crimes Enforcement Network (FinCEN) sensitive identifying "beneficial ownership information鈥 on an ongoing basis. Aside from the constitutional concerns, 51风流 has many practical concerns with this law including privacy issues and high noncompliance penalties, which were outlined in comments submitted to FinCEN. 51风流 points out that FinCEN's collection regime will lead to increased identity theft, that the program is unnecessary, and is unduly burdensome for construction firms to comply with. 51风流 also supports legislation delaying and/or repealing the CTA.
earlier this year that a federal court in Alabama ruled that CTA is unconstitutional. In the ruling, the judge issued an injunction against FinCEN, suspending enforcement of the CTA against the plaintiffs only. After the judge issued his ruling, FinCEN announced that they would continue to collect information from businesses that were not party to the lawsuit, and the Justice Department announced it would appeal the decision. 51风流鈥檚 brief lays out exactly why the lower court鈥檚 judgment should be affirmed.
51风流 hosted two informational webinars about CTA compliance, which can be viewed here and here.
51风流鈥檚 involvement in this case was made possible thanks to your contributions to the . 51风流 will keep you updated on all lawsuits and congressional action related to this rule.