Corporate Transparency Ruling Complicates Campaign to Register Business Owners

Tax attorney Alan Granwell was quoted in The Wall Street Journal expressing concerns over the uncertainty and confusion surrounding the Corporate Transparency Act (CTA) following a federal judge's ruling against its constitutionality. Mr. Granwell advised companies to continue gathering beneficial ownership information while the decision's implications play out, though he added that companies formed before 2024 may want to wait as litigation unfolds. The developments come in the backdrop of the U.S. Department of the Treasury's efforts to collect ownership details from corporate entities to curb the use of anonymous shell companies and illicit money flow, despite the recent legal challenges and the judicial order that threatens the future enforcement of the CTA.

"There is a lot of confusion and uncertainty. We're telling clients, 'You need to continue gathering the information.' Though for companies [formed before 2024], they may want to wait and see what comes next in terms of all this litigation," he said.

"There are just numerous questions that come up. It is just an immense undertaking to educate the public," he added.

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