Corporate Transparency Act Update

In this week’s podcast, we give you a Corporate Transparency Act update. The CTA is still set to require nearly every LLC and small corporation, plus many other family business entities, to file identifying information before December 31 of this year. But a brand-new court case out of Texas may have changed the rules. Or not. We wrote about the CTA in our weekly newsletter a few months ago, and updated our coverage earlier this month. As we explained then, the Act requires anyone with more than a 25% interest in many kinds of entities to provide personal identifying information through a new government agency, the Financial Crimes Enforcement Network (or FinCEN). As we explain in this week’s podcast, that structure was upended by a federal court holding that the FinCEN system for registration violates the U.S. Constitution. For the moment, the government is enjoined from requiring reports. But be careful about relying on that news. The federal government has appealed, there is a change in administrations coming, and the deadline (though suspended) still looms. What does that all mean? It means that our Corporate Transparency Act update boils down to: stay tuned.