On March 1, 2024, the U.S. District Court for the Northern District of Alabama ruled that the Corporate Transparency Act (CTA) was unconstitutional. In response to this ruling, the Financial Crimes Enforcement Network (FinCEN) has indicated that it will comply with the ruling for as long as it remains in effect, and that this ruling only applies to the plaintiffs in the case.
Since this ruling is limited to the plaintiffs in the case, other reporting companies should continue to comply with the CTA until further notice. This decision will not end the matter because the U.S. government is likely to appeal this decision and similar suits may now be inspired in other districts.
Our more detailed discussion on who is required to report under the CTA is available on our blog post: Businesses: Do You Have to Comply with the New Corporate Transparency Act Reporting Rules?
Important Filing Dates Under the Corporate Transparency Act
- For existing reporting companies created or registered before 2024, the initial report under the CTA is due by January 1, 2025. For these companies, we recommend holding off on filing for now until the issue is sorted out.
- For reporting companies created or registered in 2024, the initial report is due 90 days after the entity’s creation or registration. For these companies, we recommend consulting legal counsel as how to proceed with filings due before this is sorted out.
