Corporate Transparency Act Found Unconstitutional (For Specific Plaintiffs)

The Corporate Transparency Act (CTA) — a summary of which can be found here— became effective January 1, 2024. However, on March 1, Judge Liles C. Burke of the US District Court of the Northern District of Alabama issued a memorandum opinion and final judgment in National Small Business United v. Yellen,¹ finding that the CTA "is unconstitutional because it exceeds the Constitution's limits on Congress'power,"but the court avoided ruling on the application of the First, Fourth and Fifth Amendments of the Constitution to the CTA. As a result, the court therein permanently enjoined the Treasury Department, "along with any other agency or employee acting on behalf of the United States . . . from enforcing the Corporate Transparency Act against the Plaintiffs."