Corporate Transparency Act Held to be Unconstitutional

In a case brought by the National Small Business Association and National Small Business United, the United States District Court for the Northern District of Alabama held the C.T.A. to be unconstitutional. It was found to exceed the Constitutional limits on Congress’s powers. The Secretary of the Treasury (Janet Yellen) and any other agency or employee acting on behalf of the U.S. are permanently enjoined by the Court from enforcing the C.T.A. against members of the two organizations.

Whether the decision will withstand a challenge on appeal is anybody’s guess. We live in interesting times.

This note is presented for informational purposes only and should not be construed as legal advice.