The federal government in a court brief continued to defend the constitutionality of the Corporate Transparency Act (CTA), even though the government has, at least temporarily, eliminated the need for domestic companies to report beneficial ownership information (BOI) as part of the legislation.
In the supplemental brief filed Wednesday in the Eleventh Circuit in National Small Business United et. al. v. U.S. Department of the Treasury, et al, the government said the interim final rule that removed the BOI filing requirement for domestic companies was an executive branch action that does not affect the CTA’s constitutionality.
The BOI filing requirement still applies to foreign companies registered to do business in the U.S. under the interim final rule from the Financial Crimes Enforcement Network (FinCEN), which administers the CTA.
The Justice Department appealed to the Eleventh Circuit earlier this month after a federal district court in Alabama granted the plaintiffs’ motion for summary judgment in National Small Business United v. Yellen, holding that the CTA is unconstitutional.
The federal government is now asking the Eleventh Circuit to reverse that decision. Learn more.