Judge Liles C. Burke of the U.S. District Court of the Northern District of Alabama recently issued a memorandum opinion and final judgement in National Small Business United v. Yellen. The case was filed by the National Small Business Association, and the court ruled the Corporate Transparency Act (which includes the Beneficial Ownership Information (BOI) reporting requirement) unconstitutional, finding that the CTA exceeds the Constitution’s limits on Congress’ power.

Note that the language from the final judgement specifically relates solely to the plaintiffs in this case (i.e., the National Small Business Association (NSBA) and a specific business owner who is a member of the NSBA).

The U.S. Treasury is likely to appeal the ruling; therefore, the case is likely to continue through the judicial process for an indeterminate amount of time. During that time, small businesses should continue to file the Beneficial Ownership Information (BOI) reports.

The profession, including AICPA, MSCPA, and other state societies, continues to push for suspension of the BOI reporting rule.

To read the full JOA article, click here.

BOI resources can be found in the AICPA’s Beneficial Ownership Information Reporting here.