The US government has announced its intention to appeal a recent court decision blocking the implementation of the Corporate Transparency Act (CTA). The law aims to increase transparency in financial dealings among companies.
The CTA, which was introduced as part of the Bipartisan Budget Act of 2018, requires businesses with $20 million or more in annual gross receipts to submit information about their beneficial ownership to the Financial Crimes Enforcement Network. The US Department of the Treasury is responsible for enforcing this requirement.
In a lawsuit filed by Smith et al v. United States Department of The Treasury et al, the plaintiffs claimed that the CTA was an overreach of federal power and did not provide adequate notice or opportunity for comment before its implementation. However, the US government has maintained that the law is necessary to prevent money laundering and other financial crimes.
A recent court decision blocked the enforcement of the CTA, citing concerns about the lack of transparency in the process for registering beneficial owners. The US government has now announced its intention to appeal this ruling, arguing that it is essential for effective enforcement of the law.
Source: https://www.law360.com/tax-authority/federal/articles/2294276/us-to-appeal-block-on-corporate-transparency-act