Beneficial Ownership and the CTA in the Latest Tax Notes

We love participating in Tax Notes! Lee A. Sheppard always has an entertaining spin on the latest tax issues, and the most recent one citing Steven Bankler’s thoughts on beneficial ownership and the Corporate Transparency Act (CTA) is no exception.

As Sheppard explains, “Three years ago, Congress decided to throw out all the furniture of state regulation of business formation and replace it with a flat-pack federal database of beneficial ownership of companies. A federal district court held that the Corporate Transparency Act (CTA) is unconstitutional and does not even satisfy the commerce clause, which has been historically interpreted to justify all kinds of intrusive federal regulations.”

While the CTA makes its way through court, what are business owners to do? “We’re advising clients to get their information together, and we hope that FinCEN comes out with definitions that will assist us in preparing these forms,” Steve Bankler told Sheppard.

Read the article here, including more thoughts from Bankler.

March 25, 2024

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