Northern Alabama Court Rules Corporate Transparency Act Unconstitutional

As reported in ADA News, on March 1, a federal judge in the U.S. District Court for the Northern District of Alabama declared the Corporate Transparency Act unconstitutional in response to a lawsuit claiming that it violates five amendments of the U.S. Constitution.

The Corporate Transparency Act obligates certain businesses to disclose ownership details to the Financial Crimes Enforcement Network of the U.S. Department of the Treasury, aiming to combat tax evasion and money laundering.

However, this ruling solely impacts the parties involved in the lawsuit, leaving the legislation intact for other businesses. Therefore, dental practices must still adhere to reporting requirements if they have fewer than 20 employees and generate less than $5 million in annual revenue.

Dentists should also remain vigilant against recent fraudulent schemes attempting to gather information from those obligated to report, which may come through URLs, QR codes, or messages labeled as “Important Compliance Notice.”

Read ADA News‘ full report here.