Texas Federal Court Strikes Down Corporate Transparency Act Nationwide
The United States District Court for the Eastern District of Texas has struck down as unconstitutional, under the Tenth Amendment of the United States Constitution (that Congress lacked the power to enact the CTA because it improperly intruded on rights exclusively left to the states), the federal Corporate Transparency Act (CTA), issuing a nationwide injunction stopping its enforcement that was scheduled to begin on January 1, 2025 (many people have already complied with the law in 2024). The case is Texas Top Cop Shop, Inc. v. Garland and a copy of the complete court opinion can be read here: Texas Court Opinion in CTA Case. The federal government has filed an appeal in the case with the United States Court of Appeals for the Fifth District. They are already appealing a much more limited decision from an Alabama federal court that applied only to the parties in Alabama.
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