This week, Judge Amos L. Mazzant of the US District Court for the Eastern District of Texas granted a preliminary injunction against the CTA, ruling that it falls outside of Congress's powers.
“For good reason, Plaintiffs fear this flanking, quasi-Orwellian statute and its implications on our dual system of government,” Mazzant wrote. “Despite attempting to reconcile the CTA with the Constitution at every turn, the government is unable to provide the court with any tenable theory that the CTA falls within Congress’s power. And even in the face of the deference the court must give Congress, the CTA appears likely to be unconstitutional.”
Judge Mazzant’s ruling bars the Treasury Department from enforcing the reporting requirements of the CTA, with the injunction coming less than one month before the reporting deadline would hit.
While proposed as a means to combat terrorism and money laundering, we all know that bad guys don’t care about laws. They won’t comply with the CTA reporting requirement, and they won’t stop their illegal activity because of a database from which they can successfully hide. Meanwhile, the law-abiding Americans who submit the required CTA reports will be the ones exposed, with their names, social security numbers, addresses, and other private information now made accessible to the various agencies who request it. The punishment for not complying (which the bad actors will also know how to evade)? Fines up to $10,000 and prison terms up to two years, or both! In addition, there may be a civil fine of up to $591 PER DAY.
This week’s ruling is one critical step and, hopefully, the beginning of the end of the CTA. However, this preliminary injunction could be reconsidered in the future, particularly if the government appeals Judge Mazzant’s decision.
Old Glory Bank celebrates this huge victory for small business owners and continues to fight for your Privacy, Security, and Liberty. Join us in contacting President Trump and your elected officials to demand that they permanently repeal the CTA.
Corporate Transparency Act Blocked Nationwide by Texas Court – Article in Bloomberg Tax
Federal Court Enjoins Enforcement of the CTA Nationwide; Reporting Companies “Need Not Comply” with January 1 Deadline – Article in The National Law Review