More than 90 trade associations sent a letter today urging the federal government to support Supreme Court review of the Corporate Transparency Act. The letter calls on Treasury and DOJ to back the two pending cert petitions currently before the Court — National Small Business United v. Bessent and Texas Top Cop Shop, Inc. v. Blanche — so that the fundamental constitutional questions raised by the CTA can be resolved once and for all.
The letter was led by the S Corporation Association and comes as the CTA faces mounting legal and political pressure from the business community. It reads:
The CTA imposes an unprecedented reporting regime on tens of millions of businesses and other legal entities, raising exceptionally important constitutional, privacy, and federalism questions warranting definitive review by the Court.
Treasury’s March 2025 interim final rule exempted domestic entities and U.S. persons from the CTA’s reporting requirements, providing welcome and meaningful relief to millions of small businesses, homeowners’ associations, and other enterprises that otherwise would have faced the challenge of ongoing CTA compliance coupled with the threat of severe civil and criminal penalties. The underlying CTA statute remains intact, however, as do the constitutional questions it raises. Only a clear ruling from the Supreme Court can put this issue to rest and prevent future administrations from reimposing the broader reporting requirements.
That last point gets to the heart of the matter. The regulatory relief the current administration has provided is real and meaningful, but it is only as durable as the administration that issued it. A future White House could reverse course and millions of small businesses would find themselves back where we started. A Supreme Court ruling would end that risk permanently.
S-Corp and its partners are pursuing the legislative route as well. Congress has the power to repeal the CTA outright, and we continue to push for that outcome. But whether the courts or Congress gets there first, the goal is the same — take this harmful statute off the books permanently.
The constitutional case against the CTA is strong, and we look forward to it prevailing in court. But first, the SCOTUS needs to add it to the docket.