Washington Wire
Is There a Silver Lining in the CTA Cloud?
Yesterday’s District Court decision lifting the injunction against the Corporate Transparency Act (CTA) is a setback for Main Street.
The Texas court lifted the second and only remaining injunction blocking filing under the CTA, again forcing millions of small (and not-so-small) businesses to report all their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) or face fines and jail time. As the Court ruled:
In light of the Supreme Court’s order in McHenry v. …
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CTA Update | February 11, 2025
Notable Developments
- Smith ruling appealed
- FinCEN promises relief amid shifting legal landscape
- NFIB files amicus brief
- Delay bill sails through House
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Smith Ruling Appealed
On February 5, the DOJ filed a notice of appeal of a District Court’s ruling in Smith v Treasury, the case that led FinCEN last month to once again pause data collection under the CTA. However, the government also asked the appellate court to stay the nationwide injunction against the CTA’s …
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Main Street Asks Treasury for CTA Relief
Over 120 trade associations today called on the Treasury Department to offer Main Street some relief and certainty by delaying the CTA through at least the end of this year. As the letter sent to Secretary Scott Bessent reads:
Despite massive public awareness campaigns by the groups represented here, as of December 1, 2024 – just one month before a year-end deadline – FinCEN had received less than 30 percent of the required filings. Had …
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CTA Update | January 31, 2025
Notable Developments
- FinCEN halts CTA enforcement
- S-Corp Advisor in the WSJ
- Our Latest Podcast with CIR Litigation Director
- Delay Bill Reintroduced
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FinCEN Halts CTA Enforcement (Despite SCOTUS Ruling)
Last Friday the Financial Crimes Enforcement Network announced that businesses and covered entities are still not obligated to file under the CTA, so long as the ruling in Smith v. Treasury remains in place. Here’s the alert:
On January 23, 2025, the Supreme Court granted …
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The Experts are Wrong (Part V)
Several months ago, we asked Penn Wharton to help us score some ideas on tax reform. They politely declined. Too busy analyzing the 199A deduction, apparently. Their new paper on the deduction makes two points — the first is wrong and the second, while interesting, is not particularly helpful.
Their first point is that “Section 199A provides a 20 percent reduction in the tax rate for qualified business income relative to ordinary income tax rates.” …
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Talking Taxes in a Truck Episode 40: Decoding the CTA Legal Fight with Caleb Kruckenberg
The Corporate Transparency Act enforcement has been on quite a roller coaster in the past two months, so Main Street businesses can be forgiven if they have lost track of their filing obligations. To help shed some light on the issue, we’re joined by Caleb Kruckenberg, the Center for Individual Rights’ Litigation Director. Caleb breaks down the latest rulings out of SCOTUS and the Texas Eastern District, the interplay between cases currently being appealed in …
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The Winds of Change (and Taxes)
The Senate confirmed Scott Bessent to run the Treasury Department yesterday, which means there’s a new sheriff in town. That’s good news for the millions of Main Street businesses targeted by the Biden Administration for higher taxes and more onerous regulations.
But Main Street didn’t have to wait for Bessent’s confirmation to see how the landscape has changed under Trump. We’ve already seen material differences that promise relief now and in the future.
Example one …
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CTA Filing Pause Still in Effect
Good news! While the Supreme Court yesterday sided with the federal government in striking down an injunction against the Corporate Transparency Act, FinCEN quickly stepped in with an announcement that the filing requirements remain on hold so long as a second ruling remains in place. Here’s the notice currently posted on FinCEN’s website:
On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge …
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