Corporate Transparency Act: CTA Litigation Tracker

The Corporate Transparency Act (CTA) took effect January 1, 2024 as part of a broad antiterrorism and anti-money laundering effort of Congress. The CTA requires certain entities, known as "reporting companies," to report certain information about their "beneficial owners" to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury.

This article will be updated as prominent CTA litigation takes place across the country.

CTA Declared Unconstitutional by Alabama Federal Court

On March 1, 2024, the CTA was declared unconstitutional by the United States District Court for the Northern District of Alabama. The National Small Business Association (NSBA) and Isaac Winkles, an individual member of the NSBA, were granted summary judgment in the case. While not addressing all of the plaintiffs' claims, the court ruled that the CTA exceeded Congress' enumerated powers under the U.S. Constitution. In defense of its constitutionality, the