Two federal judges rule for small businesses, halt Corporate Transparency Act

The Center Square ^ | 1/12/25 | By Bethany Blankley

[CFW]

Within one month of each other, two federal judges ruled that a law passed by Congress is “likely unconstitutional” and ruled in favor of small businesses.

At issue is the Corporate Transparency Act, which Congress passed in 2021, overriding a veto issued by then President Donald Trump. The law requires entities incorporated under state law to disclose the personal information of their stakeholders, including current address, identification documents, and other sensitive information, to the Department of the Treasury’s Financial Crimes Enforcement Network.

After Trump’s veto was overridden, several small businesses in Texas sued U.S. Attorney General Merrick Garland, arguing the law was unconstitutional.

The first federal judge to issue a nationwide injunction halting enforcement of it in one case was Judge Amos Mazzant with the US District Court Eastern District of Texas Sherman Division. Mazzant said the reporting requirements in the law are “unprecedented” and mark “a drastic two-fold departure from history.”

[snip]

“The Corporate Transparency Act mandates that millions of private entities formed under state law disclose sensitive personal information to federal law enforcement. The Act applies even to entities that are not alleged to be involved in a crime and to entities that are not engaged in interstate or foreign commerce. Failure to comply may result in fines, penalties, and imprisonment,” Kernodle notes in his 35-page ruling.

[CFW]

Good for these two judges. Government agencies require too much information from both businesses and individuals.

[Organic Panic]

Now why would the marxist democrats want to know all that personal information. Not like the marxist democrats would use that information to punish their political enemies. And just happenstance that they LOVE their assassin, Luigi Maglione.

[Auntie Dem]

The real joke of the CTA is all the information they ask for is already disclosed to the IRS on the tax returns filed by the entities. It’s not like the IRS has never disclosed tax return data.

[heartwood]

I tried to fid out who owned some nursing homes once. The information is buried. Deep deep in corporate cover.

Considering the fraud, abuse and neglect of patients, the abuse of staff, including not making payments on their health insurance, that is one business where the owners shouldn’t be able to hide, re-partner, regroup.

[Rural_Michigan]

I think this was an attempt to disclose shell corporations and dirty dealings obscured by LLCs and other entities. I filed my info to FinCen. Didn’t really bother me ...I think something about this needs to be done.

[Harmless Teddy Bear]

Yep. When I filled them out I was wondering just what was the reason for this. All of it was information they already had and nothing on it would have helped in any way to stop what they said they wanted it for.

Either they were planning to add to it or it was just more government waste and a desire to make the plebs dance.

[Harmless Teddy Bear]

Except it didn't.

[I want the USA back]

I noticed that the media deliberately didn’t tell the folks about the “The Corporate Transparency Act” which went into effect Jan 1, 2025, so as to protect their beloved biden from getting the blame.

[Ahithophel]

Considering the fraud, abuse and neglect of patients, the abuse of staff, including not making payments on their health insurance, that is one business where the owners shouldn’t be able to hide, re-partner, regroup.

Potential wrongdoing of some justifies compelling disclosure by all? That's your theory of the case? Enuf with peddling all this virtue-signaling BS logic; if wrongdoing is suspected of staff or business owners, file a lawsuit and obtain full disclosure through discovery. Judiciary is still 1 of 3 branches of govt, and reason and critical thinking aren't crimes, yet.

[Theoria]

Often hard to find out info on entities to get recourse.

[heartwood]

What if I don’t want to work for a nursing home in which Sam Fraudster or his wife has any ownership, or send my parents to such a place?

I can’t file lawsuits everywhere.

Besides, if they take Meficare/Medicaid they ought to be an open book.

[Ahithophel]

I can’t file lawsuits everywhere.

No whining on FR. Suggest then finding someone who can.

[POGO163]

A nursing home could just be a partnership and not an LLC or corporation.

So, they would not have to file a CTA form anyway. And the Form for millions would still not give YOU the information you want. Besides, besides democrats, who do you think would ever have access to all those forms?

[Secret Agent Man]

Yup, a case where govt just keeps making more laws so more people can be gone after as violators.

[beekay]

Unfortunately, most of these companies have already sent the information to FinCEN. The filings were made under the requirement and understanding they would be subjected to fines for non-compliance.
“The Treasury Department now notes that submitting information is voluntary due to ongoing litigation.” The filings before the court rulings were not voluntary, but under the requrement in place prior to the rulings. These prior filings should not be entered into the the FinCEN tracking system.