Corporate Transparency Act Appeal on Hold as New Rules Finalized

An appeal in a case over the constitutionality of the Corporate Transparency Act isn’t moot despite an update to Treasury Department rules implementing the law, the Fifth Circuit said, although the court put the case on hold while the rulemaking process plays out.

The challenge in the US Court of Appeals for the Fifth Circuit is one of several against the CTA, which aimed to impose new reporting requirements on corporations in an effort to stem financial crimes. But the government paused enforcement late last year, opting to focus the reporting requirements on foreign-held entities rather than US businesses.

The ...