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Judge blocks new federal Corporate Transparency Act

The new federal Corporate Transparency Act requiring businesses including farms to report ownership and management details to the federal government has been found unconstitutional by an Alabama judge.

Attorney Amy Ebeling with the Ruder Ware law firm in Wisconsin says the plaintiff in the Alabama case was the National Small Business Association, so the judge’s ruling only applies to them for now and it’s unclear how this impacts other businesses around the country, so her advice? She says, “I would recommend that folks that have a filing deadline that is coming up, you should still consider complying with the rules, but those that don’t have a deadline for several months should consider waiting to see how this plays out.”

The Corporate Transparency Act went into effect January 1st, requiring anyone who has formed a business entity with any state government to provide information to the federal government about the owners and those that may have management or other authority inside the business, even if they don’t own the business.

Ebeling says she expects the federal government to quickly file an appeal, and she says businesses including farmers will have to pay attention to the court case and how it affects them.

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