The U.S. Justice Department (DOJ) has appealed a federal court decision that held the Corporate Transparency Act (CTA), which requires the reporting of beneficial ownership information (BOI) by businesses, is unconstitutional.
On Monday, March 11, the DOJ filed its appeal of the March 1 decision by a federal district court in Alabama to grant the plaintiffs' motion for summary judgment regarding the constitutionality of the law in the case.
Under the CTA, which Congress passed in 2021 as an anti-money-laundering initiative, reporting companies must disclose the identity and information about beneficial owners of the entities.
Treasury's Financial Crimes Enforcement Network, which administers the CTA, estimates that BOI reporting regulations apply to 32.6 million entities with 5 million added annually through 2034.
In a statement after the federal court opinion, the AICPA said that small businesses should continue to file BOI reports. The statement also said that the AICPA continues to push for the suspension of the BOI reporting rule. Learn more.