Update on Federal Court Ruling on CTA

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.