Larry Laubach was quoted in a Corporate Compliance Insights article discussing a Texas federal court’s preliminary injunction to halt the enforcement of the Corporate Transparency Act (CTA), which would require more than 32 million U.S. entities to file beneficial ownership reports with FinCEN. In March 2024, an Alabama court found the law unconstitutional based on its conclusion that Congress overextended its authority.

“Because the CTA was part of a law passed by Congress (and the beneficial ownership reporting regulations in large measure track the terms of the law) rather than a regulation issued by the executive branch of the government expanding or interpreting a law, I would expect that FinCEN will continue to appeal the nationwide preliminary injunction order until President Trump’s administration provides guidance as to whether it supports the CTA in its present form,” said Larry. It is suggested that those entities who have already started gathering information and reporting continue to do so in case the requirements go back into effect.

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