A U.S. District Court judge has ruled that the Corporate Transparency Act (CTA) is an unconstitutional act by Congress in that it “exceeds the Constitution’s limits on the legislative branch and lacks a sufficient nexus to any enumerated power to be a necessary or proper means of achieving Congress’ policy goals.” The court has now prevented the government from enforcing the CTA against the lead plaintiff in the case, the National Small Business Association, and likely its over 65,000 members. While the ruling didn’t explicitly amount to a cross-the-board prevention of the government from enforcing the CTA to parties not involved in the lawsuit but still subject to the CTA’s reporting requirements, the ruling at this time makes it more difficult for the government to currently enforce the law. The government has 60 days to appeal the case. While this issue may continue to play out in the courts, for now it is a victory for small businesses (and pharmacies). For a description of the CTA, including our member summary, see here.
NCPA
