Trump’s Corporate Transparency Act Rollback Jostles Legal Fights

The Trump administration’s policy to exempt US citizens and domestic companies from needing to make disclosures under the Corporate Transparency Act barreled into several ongoing disputes about the law’s constitutionality.

The latest reporting rule undermines facial challenges brought against the CTA by domestic companies over whether the law exceeded Congress’s authority over interstate commerce, the Treasury Department told a federal appeals court in New Orleans on Tuesday. Only foreign entities now are targeted under the latest regulation, showing the law clearly falls within Congress’s enumerated powers over foreign commerce, it said.

“The Interim Final Rule highlights the overbreadth of the ...