NFIB: case on onerous reporting requirements

By NFIB,

10/9/24 — Today’s hearing concerns NFIB’s efforts to stop the onerous reporting requirements from going into effect

WASHINGTON, D.C. (Oct. 9, 2024) – Today, the United States District Court for the Eastern District of Texas will hold its first hearing in the case Texas Top Cop Shop, Inc., et al. v. Garland, et al. NFIB filed the lawsuit challenging the Corporate Transparency Act (CTA) and legality of the beneficial ownership reporting requirements for small businesses. This hearing concerns NFIB’s motion for a preliminary injunction, which seeks to block the reporting requirements from going into effect. The hearing will take place at 10:00 a.m. ET.

“We are relieved to see the court holding this hearing,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “For many of America’s small businesses, the beneficial ownership reporting deadline is January 1, 2025. For them, time is of the essence, and they need to know whether they must comply with a reporting requirement that mandates revealing private and personal identifying information. Today, we ask the court to block the Treasury and FinCEN from enforcing the CTA and beneficial ownership requirements until this matter has been fully adjudicated.”

NFIB’s lawsuit argues that the CTA exceeds Congress’s authority over the states, it improperly compels speech and burdens association, it unconstitutionally compels disclosure of private information, and the reporting rule is not in accordance with the law. The lawsuit was filed with the Texas Top Cop Shop, Data Comm for Business, Mustardseed Livestock, Russell Straayer, and Libertarian Party of Mississippi.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

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