While a U.S. Supreme Court order has allowed the Corporate Transparency Act (CTA) to move forward amid legal challenges, its future enforcement remains uncertain under the new Trump administration. The administration has taken steps to defend the CTA in court but faces significant Republican opposition, with ongoing litigation creating uncertainty for businesses. Haynes Boone Tax Associate Annie Lawson spoke to Bloomberg Law about the future of the CTA.
Read an excerpt below:
Annie Lawson, an associate in the Tax Practice Group in Haynes Boone’s Denver office, believes the district court in the Smith case will vacate the stay on the FinCEN rule in light of the justices’ ruling, allowing the agency to set a new date for the CTA to go into effect.
“The message from SCOTUS is clear; the CTA should remain in effect while the issue is being litigated,” Lawson said. And if that order is appealed, it’s likely the Fifth Circuit would lift the enforcement stay without much delay, she said.
