Alabama federal judge rules the Corporate Transparency Act unconstitutional, halting small business owner reporting requirements.

An Alabama federal district judge has ruled that the Corporate Transparency Act (CTA) is unconstitutional. The Treasury Department cannot require small business owners to report details on their owners and others who benefit from the business; the ruling deems the rulemaking stemming from the CTA as unlawful. The National Small Business Association filed a lawsuit against the CTA in November 2022, arguing that the reporting rule violates the Constitution.