"Federal Judges Declare Corporate Transparency Laws Unconstitutional"

A federal district court in Alabama has ruled the Corporate Transparency Act unconstitutional, stating that while the legislation may have sensible goals, it exceeds the limits of Congress's powers under the Constitution. The act requires reporting of beneficial ownership information by businesses, but the court found that it does not fall within Congress's foreign affairs or Commerce Clause authority. The court also rejected the argument that the act is a necessary and proper exercise of Congress's taxing power. The ruling grants a motion for summary judgment in the case of National Small Business United v. Yellen, and the AICPA continues to push for suspension of the reporting rule.