BREAKING NEWS!!!!! Read all about it........
From the desk of Sarah E. Morrison, Esq.
DO NOT FILE YOUR CTA
Tuesday, December 3, 2024, a Federal judge out of Texas issued a nationwide injunction against the enforcement of the Corporate Transparency Act. The 79-page opinion is attached for those interested in the detailed history and analysis. For those looking for the snack size version, the Judge found that the CTA is “likely unconstitutional as outside of Congress’s power.” This is not the first case that has challenged the constitutionality of the CTA. Nor is it the first court to determine the CTA is unconstitutional. However, the other courts have only issued injunctions as to the specific plaintiffs in that case. This is the first court to issue a nationwide injunction to stop any requirement to comply with the CTA.
The plaintiffs challenged the constitutionality of the CTA on the following basis:
(1)" The CTA intrudes upon States’ rights under the Ninth and Tenth Amendments;
(2) The CTA compels speech and burdens Plaintiffs’ right of association under the First Amendment; and
(3) The CTA violates the Fourth Amendment by compelling disclosure of private information”
In determining whether or not to issue the preliminary injunction, the plaintiff had to show:
(1) "That the CTA and Reporting Rule substantially threaten Plaintiffs with irreparable harm;
(2) A substantial likelihood of success on the merits of any of their challenges;
(3) That the threatened harm outweighs any damage the injunction might have on the Government; and
(4) That preliminary injunctive relief will not harm the public.”
While the court did not issue a final verdict that the CTA is in fact unconstitutional. The Judge found that the plaintiffs proved each of the four requirements for a preliminary injunction outlined above including that by the government’s own estimates, compliance costs in the first year of enforcement would exceed $22 Billion, thereby supporting the Plaintiffs’ position that there is a significant burden on businesses that cannot be resolved if the injunction is not granted the judge and that the plaintiffs were more likely than not to succeed on their case as to the constitutionality of the CTA. The Judge confirmed that position our office has taken throughout this process that corporate regulation is at a state level and that this is an overreach by the federal government.
Based on the court’s findings regarding the threat of harm and likelihood of success, the court found that the injunction should apply nationwide, and the government is now prohibited from enforcing the CTA. This means that anyone who has not yet complied with the CTA does not have to until further direction is issued by the court in Texas or a higher court.
CLICK HERE TO READ THE CASE
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Continuing on the first Tuesday of every month, ACRE (Active Community of Real Estate Entrepreneurs) Monthly Meeting is being held at the
We are now starting our formal meeting at 6 PM and the Main Speaker will now be going on stage at 7:30 with the goal of ending the meeting at 9 PM
Join us on the first Tuesday every month as we continue this new chapter in the Organization