On March 6, 2024 we posted Federal Court Rules Corporate Transparency Act Unconstitutional - No Need to File BOI Just Yet where we discussed that in National Small Business United v. Janet Yellen, a Northern District of Alabama Federal Judge ruled on March 1, 2024, that the CTA was unconstitutional.
At first glance, the summary judgment could be read as banning the Treasury and any other agency of the federal government from enforcing the CTA. However, The court's ruling prohibits CTA enforcement only against the NSBA itself and all of its members.
The Treasury Department's Financial Crimes Enforcement Network made its interpretation of the ruling clear in a statement issued by FinCEN stated that the ruling applies (ONLY) to the plaintiffs.
"Those Individuals And Entities Are Not Required To Report Beneficial Ownership Information To FinCEN
At This Time."
Therefore all reporting companies facing CTA deadlines should seriously consider filing, even if the Federal District Court's ruling covers them. Businesses that fail to file in time to meet their CTA deadlines are betting on the NSBA prevailing in the courts.
Meanwhile, If The US Prevails, These Businesses Will
Potentially Face Significant Civil Fines, Interest, And Penalties, As Well As Possible Criminal Penalties, Including Jail Time.
Choosing to file means potentially losing their filing fees and any cost incurred if they decide to use an advisor. However, filing provides peace of mind, staying in CTA compliance means there's no chance of facing more stringent financial and criminal penalties for failure to file.
Need Help Filing Your BOI Report?
Contact the Tax Lawyers at
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)
Read more at: Tax Times blog
