A Texas Federal Court declared the Corporate Transparency Act (“CTA”) unconstitutional and issued an injunction stopping the Internal Revenue Service from enforcing the CTA’s provisions. This means all companies previously under the law required to file various identifying information with the IRS is no longer required to do so. This matter will certainly be appealed by the government to the 5th Circuit Court of Appeals and possibly the U.S. Supreme Court.
The ruling should be overturned, as this law appears to be unconstitutional. We have been advising our clients to hold off filing the CTA’s required documents. Now that the injunction has been issued, we are advising our clients not to file the documents required by the CTA until further rulings from the Courts.
