Tax Notes Talk The Corporate Transparency Act: Recent Challenges and Confusion
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Jan 17, 2025 Lili Martin-Mashburn, a partner at Morris, Manning & Martin, shares her expertise on the Corporate Transparency Act and its current legal challenges. She discusses ongoing litigation questioning the act's constitutionality, including significant cases from Alabama and the Small Business Association of Michigan. The implications for privacy rights and compliance uncertainty for businesses are highlighted. Lili emphasizes the need for companies to stay informed and prepared as the legal landscape evolves.
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CTA Overview
- The Corporate Transparency Act (CTA) aims to increase transparency in business ownership.
- It creates a beneficial ownership registry to combat illicit activities like money laundering and tax evasion.
Past U.S. Data Collection
- The U.S. government has not historically collected beneficial ownership information for smaller businesses.
- The CTA seeks to address this gap.
Enforcement Status
- The CTA's enforcement is currently universally enjoined.
- Reporting companies can file voluntarily, but it's not mandatory.