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Alabama Court Declares Corporate Transparency Act Unconstitutional

March 8, 2024

The CTA, effective as of January 1, 2024, mandates certain entities (Reporting Companies) to disclose information about their Beneficial Owners to FinCEN. For additional details regarding the CTA and its reporting requirements, please refer to Kerr Russell’s FAQs.

On March 4, 2024, FinCEN released a notice regarding the scope of the court’s decision and ongoing compliance with the CTA (Notice). In the Notice, FinCEN indicated that it is not currently enforcing the CTA against the plaintiffs in the case, which include Isaac Winkles, Reporting Companies with Winkles as the Beneficial Owner or Company Applicant, the National Small Business Association (NSBA), and NSBA members (as of March 1, 2024). Although not clearly stated in the Notice, the CTA remains in effect for all others.

Kerr Russell will continue to monitor developments and provide updates as more information becomes available.