Update on Federal Court Ruling on CTA
–
March 4, 2024
Late last week, a federal district court ruled in the case of National Small Business United v. Yellen. The case was filed by the National Small Business Association, and the court ruled the Corporate Transparency Act — which includes the beneficial ownership information (BOI) reporting requirement — unconstitutional.
The U.S. Treasury is likely to appeal the ruling; therefore, the case is likely to continue through the judicial process for an indeterminate amount of time. During that time, small businesses should continue to file the beneficial ownership information (BOI) reports.
The accounting profession, including AICPA, NJCPA and other state societies, continues to push for suspension of the BOI reporting rule.
Get additional guidance in our BOI Knowledge Hub.
The information in this guide has been gathered from many sources, including the Internal Revenue Service, the Social Security Administration, state agencies, professional organizations and members of the NJCPA. The COVID-19 pandemic has prompted the majority of state agencies to offer more online and prerecorded services. Though offices have reopened after the COVID-19 shutdown, it’s best to check online or call before you visit.
Material contained within this guide should be augmented by, and used in accordance with, a certified public accountant's professional judgment. Your CPA can properly apply the tax laws and regulations to the facts and circumstances of your particular situation. For help with locating a CPA, visit findacpa.org.
The New Jersey Society of Certified Public Accountants is not responsible for any claims arising as a result of this information or its usage.
This guide was updated in October 2023. Future users of this material are cautioned that some portions, particularly tax-related information, may become outdated.