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3mo ago

Supreme Court Reinstates Corporate Transparency Law During Appeals Process

The decision allows the federal government to enforce the 2021 law requiring business ownership disclosures while legal challenges continue in lower courts.

Overview

  • The U.S. Supreme Court issued a stay on a nationwide injunction that had blocked enforcement of the Corporate Transparency Act (CTA).
  • The 2021 law mandates corporations and LLCs to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) to combat money laundering and other financial crimes.
  • The decision follows a challenge by small businesses and conservative groups, who argue the law is unconstitutional and imposes undue compliance costs.
  • Justice Ketanji Brown Jackson dissented, stating the government failed to demonstrate urgency, as lower court proceedings are already expedited.
  • The case will return to the 5th Circuit Court of Appeals, which is scheduled to hear oral arguments on March 25, potentially setting the stage for further Supreme Court review.