Corporate Transparency Act (CTA) Declared Unconstitutional by Federal Judge

The Corporate Transparency Act (CTA) was implemented on January 1, 2024, to combat money laundering and enhance corporate transparency. This act required certain businesses to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN).

Most businesses had until January of 2025 to report their beneficial ownership to FinCen if their business existed before 2024. If a business began in 2024, it had 90 days to report the ownership to FinCen. That 90-day window was shortened to 30 days for new businesses starting in 2025 and after.   

On March 1, 2024, a Federal Judge in the Northern District of Alabama ruled the CTA unconstitutional. This means the reporting requirements for BOI are currently on hold.

You may have been preparing to comply with the CTA, and this news might raise questions. We are closely monitoring the situation and will keep you updated on any further developments, including potential revisions to the CTA or the next steps for businesses.

In the meantime, contact your Whittlesey advisor with questions.