TheCorporateCounsel.net

Earlier this month, Meredith blogged about a federal district court case out of Alabama that held that the Corporate Transparency Act is unconstitutional. She also wrote about FinCEN’s statement in response to this holding – which said that the government will continue to enforce CTA requirements against everyone except the specific plaintiffs in this case – and she predicted that the DOJ would appeal.

Sure enough, the DOJ has filed this notice of appeal. We do not yet know when the 11th Circuit will hear this case, what the decision will be, and whether a ruling will be issued before December 31, 2024, which is the compliance deadline for entities formed before January 1, 2024. This Denton’s blog points out that FinCEN could seek a stay of the District Court’s ruling on top of its previously issued statement – which may help companies read the tea leaves of where the court ultimately will come down.

Remember that public companies need to conduct a compliance review despite appearing to have an exemption from this statute. And this King & Spalding memo says it’s too early to write off the CTA. It encourages everyone to keep marching ahead – at least with respect to conducting the compliance review and establishing processes.

– Liz Dunshee