Following the recent nationwide preliminary injunction order in Texas against enforcement of the Corporate Transparency Act (CTA), in a separate lawsuit against the CTA, a district court in Utah issued a 90-day stay as a result of the injunction and pending the new presidential administration. The parties were advised that they could refile if the preliminary injunction is disrupted in any way.
The CTA requires state or tribal registered corporations or limited liability companies with under 20 employees whose gross receipts are under $5 million to report private, sensitive information on “beneficiary owners” to the federal government, which will purportedly be stored in a secure government database.
On July 29, 2024, R-CALF USA, the People Restored, Crofter Market, Utah OSR Land Cooperative, and several Utah-based individuals filed a joint lawsuit in the U.S District Court for the District of Utah against the U.S. Department of the Treasury and others, seeking a declaration from the court that would repeal the law.
Yesterday’s hearing follows courts across the country that are also reviewing challenges against the law; including the recent preliminary injunction on December 3 in the U.S. District Court for the Eastern District of Texas that temporarily blocked the enforcement of the CTA.
R-CALF USA and its fellow plaintiffs’ case differs from the Texas case as it argues additional constitutional violations. Both cases seek to repeal the CTA.
In addition to litigation pushback, in Congress, the Repealing Big Brother Overreach Act (H.R.8147 and S.4297) seeks to repeal the CTA. With 100 cosponsors in the House and 17 in the Senate, R-CALF USA encourages swift passage of the legislation.