The Corporate Transparency Act (CTA) and the new BOI Reporting has come under legal challenges from various groups including the National Small Business Association (NSBA). On March 1, 2024, the U.S. District Court for the Northern District of Alabama (Eleventh Circuit) held the CTA unconstitutional in a case brough by the NSBA. This BOI Reporting relief granted by that district court is limited to enjoining the federal government from enforcing the CTA against the plaintiffs only (NSBA and an NSBA member).
The judgment leaves the CTA intact against other parties. The Treasury Department is appealing the district court decision to the Eleventh Circuit. In addition, many lawmakers in recent weeks have come to further advocate for the constitutionality of the CTA that was passed overwhelmingly with bipartisan support in 2021. The New York University School of Law also filed an amicus brief supporting the Treasury Department’s appeal in the Eleventh Circuit.
FinCEN has issued guidance that they are continuing to enforce BOI Reporting and so it is prudent for reporting companies to continue to file and gather all of the required information in order to risk civil and criminal penalties.