Federal Judge Declares Corporate Transparency Act Unconstitutional

On March 1, 2024, the US District Court for the Northern District of Alabama ruled in favor of Issac Winkles and the National Small Business Association (NSBA), granting summary judgment and deeming the Corporate Transparency Act (CTA) unconstitutional. The court's decision stemmed from the belief that the CTA overstepped the federal government's specified powers. Consequently, an injunction was issued to protect the named plaintiffs involved in the case. Following this verdict, the US Department of Treasury's Financial Crimes Enforcement Network (FinCEN) released a statement confirming its decision not to pursue enforcement actions against Winkles, the reporting companies in which he holds a beneficial interest, the NSBA, or its members.