Texas Court Halts Corporate Transparency Act Nationwide
TL;DR
A Texas federal court has issued a nationwide preliminary injunction against the Corporate Transparency Act (CTA), which mandates US businesses to report stakeholder information to the Treasury Department. The court ruled that the CTA exceeds Congress's powers under the Commerce Clause, as it regulates entities regardless of commercial activity. The lawsuit, brought by Texas Top Cop Shop Inc. and others, argued that the CTA's requirements are unconstitutional. The government contends the law is necessary to combat illicit activities like money laundering.
Topics:businesslaw#beneficial-ownership#business-regulation#commerce-clause#corporate-transparency-act#law#texas-court
- Corporate Transparency Act Blocked Nationwide by Texas Court Bloomberg Tax
- Texas Federal Court Issues Nationwide Injunction Against Enforcement of the Corporate Transparency Act The National Law Review
- Court Blocks Corporate Transparency Act: A Win For Federalism? Forbes
- Millions of Americans Have Failed to Comply With New Tax Ownership Rules Barron's
- Judge puts nationwide hold on corporate reporting law Capital Press
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