Fort Lauderdale, Fla. (March 11, 2024) - On
March 1, 2024, a federal district court in the Northern District of
Alabama, Northeastern Division, entered a final declaratory
judgment in the case of National Small Business United v.
Yellen, No. 5:22-cv-01448 (N.D. Ala.) declaring the
Corporate Transparency Act (the "CTA") unconstitutional.
The Court concluded that the CTA exceeded Congress's
constitutional powers and permanently enjoined FinCEN from
enforcing it against the plaintiffs. The judgment has left many
questioning its impact, wondering whether they should continue to
report beneficial ownership to FinCEN or wait for final disposition
of the case.
Notably, the Court's final judgment was narrowly drawn to
apply only to FinCEN's enforcement of the CTA as against the
plaintiffs. That is, FinCEN may not enforce the CTA against the
individual plaintiffs, nor National Small Business United and its
65,000 members as of March 1, 2024. On March 4, 2024, FinCEN
