ANALYSIS: The Corporate Transparency Act—A Legal Hot Potato?

There’s been a bit of confusion lately surrounding the Corporate Transparency Act. Is it constitutional or isn’t it? Is it enforceable or isn’t it?

Various federal courts have since December gone back and forth on these questions. For the time being, the answer appears to be that the act isn’t enforceable. But that could change.

The Act

Since the time of its enactment in January 2021, the constitutionality of the Corporate Transparency Act has been widely debated. The act requires private reporting companies to provide detailed ownership information on an ongoing basis to the Financial Crimes Enforcement Network (FinCEN), a ...