Corporate Transparency Act Is Unconstitutional, Judge Rules

A federal court in Alabama has ruled that a law requiring companies to report extensive stakeholder ownership information to the government is unconstitutional.

In his opinion Friday, Judge Liles Burke of the US District Court for the Northern District of Alabama, ruled that the Corporate Transparency Act is unconstitutional in a suit brought by the National Small Business Association against the US Treasury Department.

Burke ruled Congress lacks the powers to require companies to disclose personal stakeholder information to Treasury’s criminal enforcement arm.

As of Jan. 1, companies are required to report their “beneficial ownership” to the Treasury Department—the identities ...