Takeaways and Next Steps
On March 1, 2024, the US District Court for the Northern District of Alabama granted summary judgment to Issac Winkles and the National Small Business Association (NSBA), holding that the Corporate Transparency Act (CTA) is unconstitutional because it represents legislative action outside the federal government’s enumerated powers. The court issued an injunction for the benefit of the named plaintiffs in the matter. The US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) confirmed in a statement that, in light of the ruling, it would not pursue enforcement actions against Winkles, reporting companies for which he is a beneficial owner or applicant, the NSBA or its members.
