A federal court has issued a preliminary injunction against the enforcement of the Corporate Transparency Act (CTA), delaying the requirement for businesses to file Beneficial Ownership Information Reports (BOIR).
The court found that the CTA likely violates constitutional protections, including the First and Fourth Amendments, by mandating the disclosure of sensitive ownership details. Plaintiffs argued that the federal requirement infringes on states’ rights and imposes costly compliance burdens on small businesses.
This ruling pauses the implementation of the BOIR requirement and questions the law’s validity.
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