Two federal judges rule for small businesses, halt Corporate Transparency Act

By Free Republic | Created at 2025-01-12 19:05:36 | Updated at 2025-01-13 00:07:24 5 hours ago

Two federal judges rule for small businesses, halt Corporate Transparency Act
The Center Square ^ | 1/12/25 | By Bethany Blankley

Posted on 01/12/2025 10:46:18 AM PST by CFW

Within one month of each other, two federal judges ruled that a law passed by Congress is “likely unconstitutional” and ruled in favor of small businesses.

At issue is the Corporate Transparency Act, which Congress passed in 2021, overriding a veto issued by then President Donald Trump. The law requires entities incorporated under state law to disclose the personal information of their stakeholders, including current address, identification documents, and other sensitive information, to the Department of the Treasury’s Financial Crimes Enforcement Network.

After Trump’s veto was overridden, several small businesses in Texas sued U.S. Attorney General Merrick Garland, arguing the law was unconstitutional.

The first federal judge to issue a nationwide injunction halting enforcement of it in one case was Judge Amos Mazzant with the US District Court Eastern District of Texas Sherman Division. Mazzant said the reporting requirements in the law are “unprecedented” and mark “a drastic two-fold departure from history.”

[snip]

“The Corporate Transparency Act mandates that millions of private entities formed under state law disclose sensitive personal information to federal law enforcement. The Act applies even to entities that are not alleged to be involved in a crime and to entities that are not engaged in interstate or foreign commerce. Failure to comply may result in fines, penalties, and imprisonment,” Kernodle notes in his 35-page ruling.

(Excerpt) Read more at thecentersquare.com ...

TOPICS: Business/Economy; Constitution/Conservatism; Government
KEYWORDS: commerce; cta; garland; privacy; smallbusinesses; spying; surveillance; trump

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Good for these two judges. Government agencies require too much information from both businesses and individuals.

1 posted on 01/12/2025 10:46:18 AM PST by CFW

To: CFW

Now why would the marxist democrats want to know all that personal information. Not like the marxist democrats would use that information to punish their political enemies. And just happenstance that they LOVE their assassin, Luigi Maglione.

2 posted on 01/12/2025 10:51:46 AM PST by Organic Panic (Democrats. Memories as short as Joe Biden's eyes)

To: CFW

The real joke of the CTA is all the information they ask for is already disclosed to the IRS on the tax returns filed by the entities. It’s not like the IRS has never disclosed tax return data.

3 posted on 01/12/2025 10:52:57 AM PST by Auntie Dem (Hey! Hey! Ho! Ho! Terrorist lovers gotta go!)

To: CFW

I tried to fid out who owned some nursing homes once. The information is buried. Deep deep in corporate cover.

Considering the fraud, abuse and neglect of patients, the abuse of staff, including not making payments on their health insurance, that is one business where the owners shouldn’t be able to hide, re-partner, regroup.

4 posted on 01/12/2025 10:52:59 AM PST by heartwood (If you're looking for the /sarc tag, you just passed it.)

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