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PRESS | NSBA, Member Suit Over CTA Begins

The law, if implemented, would require millions of Americans to disclose personal information to the federal government indefinitely.


Monday, Nov. 20, 2023



Molly Day, NSBA​​​​



Washington, D.C.Oral Arguments Begin in Isaac Winkles and National Small Business Association Constitutional Challenge to Congress’s Corporate Transparency Act


Huntsville, AL – Today, Nov. 20, at 10:00 a.m., oral arguments in National Small Business Association v. Yellen will begin at the Huntsville United States District Court. The case is a challenge to the constitutionality of the Corporate Transparency Act (CTA) and specifically the law’s beneficial ownershipreporting requirements. The law would require nearly every American who runs or wants to form a corporation or LLC to give the Financial Crimes Enforcement Network (FinCEN)deeply personal information of its owners like date of birth, current address, and an image of their driver’s license.


“The CTA has been mired in confusion and ambiguities start to finish. Not only is it bad policy, it is unconstitutional,” said NSBA President and CEO Todd McCracken who will be in attendance for the oral argument. “Americans who are not suspected of doing anything wrong are being asked to provide deeply personal information to a government agency, which is putting the information in a database for criminal law enforcement purposes. These small-business owners will have to pay on average $8,000 in compliance costs in the first year alone. Americans justifiably have little confidence in the federal government’s willingness to secure their personal data, the law calls for the government to share this information with foreign governments.”


The oral arguments in the Northern District of Alabama’s Huntsville courthouse focused on challenges to the CTA for violating plaintiff’s First, Fourth, and Fifth Amendment rights while also simply being beyond the scope of Congress’s powers.


“Congress, whether or not it has good intentions, is always constrained by the Constitution,” said John Neiman, attorney for the plaintiffs. “Our challenge is trying to get Congress to follow the law and not create an unconstitutional burden on Americans.”


Isaac Winkles, the owner of Alabama Property Management, Inc. in Huntsville, along with other local business owners and NSBA members will be in attendance during the oral arguments.


Click here to learn more.


About NSBA: Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit or follow us at @NSBAAdvocate.


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