The North American Equipment Dealers Assn (NAEDA) issued a Legislative Alert in response to federal court action on the Corporate Transparency Act (CTA). The statement in its entirety, issued by NAEDA’s Sr. VP of Government Affairs, Eric Wareham, follows.

“Yesterday, a federal court struck down the Corporate Transparency Act (CTA) and issued a nationwide injunction against enforcement of the law including its reporting requirements.

For dealers that have not reported or are in the onerous process of gathering information for reporting, you no longer have to comply with the January 1, 2025 reporting deadline.

The CTA required business owners to report beneficial ownership information to the Financial Crimes Enforcement Network, a government agency. The purported reason for the rule was to prevent money laundering, but the federal court issued a nationwide injunction because the law is likely to be held unconstitutional.

Although business owners have been alleviated from the burden of reporting for now, the injunction is not the final say on the matter. There are several court cases weaving their way through the appeals process, including this recent decision which will likely be appealed. Dependent on the outcome of those cases, the new administration and Congress may need to provide a permanent fix by repealing the enabling statute.

NAEDA has worked with several coalitions on this issue over the past few years. We will continue our push to reduce burdensome regulations such as these in the new Congress and keep members updated on the status of this and other regulations. If you have any questions, please contact us.”

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