Media Contact: Barbara Fornasiero, EAFocus Communications; barbara@eafocus.com; 248.260.8466
Birmingham, Mich.—March 8, 2024 –John W. Crowe, managing partner of Birmingham, Michigan-based corporate law firm Williams Williams Rattner & Plunkett (WWRP), shared an important update on the Corporate Transparency Act, which took effect January 1, 2024, following its 2021 enactment.
On Friday, March 1, Judge Liles Burke of the United States District Court for the Northern District of Alabama ordered the Corporate Transparency Act could not be enforced against the plaintiffs in the matter before him, National Small Business Association et al. v Janet Yellen et al. Judge Burke’s order declared the Corporate Transparency Act to be unconstitutional and therefore enjoined its enforcement against the plaintiffs. In response, on March 4, 2024, the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, issued a press release acknowledging the court decision and its effect on the plaintiffs only – suggesting that FinCEN views the CTA as still in effect for all persons and entities other than the plaintiffs in NSBA. Given the current situation, Crowe offers the following guidance:
“WWRP is continuing to monitor the legal landscape on this matter, including the possibility that the U.S. Department of Treasury will appeal this ruling,” Crowe said. “In the meantime, we are advising our clients the Corporate Transparency Act is still in effect but to check with us regularly, as additional developments or guidance may appear before the deadline of an applicable reporting period under the CTA.”
CTA requires reporting companies in the United States to disclose to FinCEN the names of individuals who own or control a company operating in the U.S. market. The goal of identifying these “beneficial owners” is to obtain information and increased transparency to fight tax fraud, money laundering and other nefarious financial dealings by gaining information on an estimated 32 million entities.
About Williams Williams Rattner & Plunkett
Williams Williams Rattner & Plunkett is a corporate law firm comprised of trusted attorneys, counselors and litigators committed to our clients’ success. Practice areas include business and commercial law, mergers and acquisitions, real estate including zoning, property tax appeals and eminent domain, commercial litigation, trusts and estates, divorce, and family law matters. A leader in local and state bar activities, community organizations, and charitable endeavors, Williams Williams Rattner & Plunkett understands the role attorneys play in a dynamic business environment, and as members of a vibrant community. Learn more about the firm and its commitment to exceptional client service at www.WWRPLaw.com.
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