An Alabama District Court declared the Corporate Transparency Act (the “Act”) unconstitutional in a case brought by the National Small Business Association and an individual.

The ruling is being appealed by the Department of the Treasury; its Notice of Appeal was filed on March 11, 2024. The government may seek a stay of the ruling pending the appeal.

It is likely that plaintiffs in other jurisdictions may also raise challenges to the Act,  seeking relief for additional entities. However, except for the Alabama plaintiffs, the government continues to enforce the Act, which was outlined in a January Client Alert.

Absent a review by the Supreme Court, or action from Congress, it may be several years before the federal judiciary provides a definitive answer.

Our office is available to answer any questions you may have about the Act.

Bob Weiss leads the real estate and finance departments at Valensi Rose, PLC. He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. or 310-601-7010.