Supreme Court Allows Enforcement of Corporate Transparency Act

Source: Bloomberg Tax

The US Supreme Court on Thursday said it will allow the government to implement the Corporate Transparency Act, requiring millions of businesses to file information on their beneficial owners.

The justices stayed the injunction blocking the enforcement of the CTA, which requires US entities to disclose who owns and controls their businesses.

The move paves a path for the government to move ahead with enforcement of the law while its merits are being debated in the US Court of Appeals for the Fifth Circuit.

That court plans oral arguments March 25.

Justice Neil Gorsuch concurred in the decision, saying he would “go a step further and, as the government suggests, take this case now to resolve definitively the question whether a district court may issue universal injunctive relief.”

Justice Ketanji Brown Jackson dissented, saying she didn’t see a need for intervention because the government hadn’t proven exigency

Read more: https://news.bloombergtax.com/daily-tax-report/supreme-court-allows-enforcement-of-corporate-transparency-act

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Here is the latest on the enforcement of the Corporate Transparency Act. First a federal court in Texas enjoined the enforcement of the Corporate Transparency Act (the "CTA&quot on December 3, 2024. Then on December 23, the Fifth Circuit stayed this injunction and FinCen set new timelines for filings under the CTA. Then on December 26, a different panel of the Fifth Circuit reinstated the injunction and FinCen agreed that there would be no enforcement under the CTA but appealed to the SCOTUS. Today, the SCOTUS reinstated the CTA.

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