4min snip

Tax Notes Talk cover image

The Corporate Transparency Act: Recent Challenges and Confusion

Tax Notes Talk

ANECDOTE

Constitutional Challenges to the Corporate Transparency Act

  • The Corporate Transparency Act (CTA) faces constitutional challenges, primarily focusing on the Commerce Clause.
  • Opponents argue that forming an entity isn't inherently interstate commerce, citing the Affordable Care Act case.
  • The government contends that entity formation is economic activity, even locally, with potential interstate impact, citing a marijuana regulation case.
  • Other challenges involve First, Fourth, Fifth, Eighth, and Tenth Amendment violations, citing privacy concerns against national security needs.
  • The CTA, passed under the Trump administration, faces an uncertain future with a new Congress.
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