Copy of AFF Sentinel V22 #07-FinCEN Said Not Yet
- Steve Dittmer
- Jul 22
- 2 min read
The Tangled Web Is Still Tangled
Steve Dittmer | AFF Sentinel
Colorado Springs, CO
Originally sent to subscribers 01/26/25
No one would ever mistake a democratic republic as an easy way of governing.
As a way of living up to that reputation, the Corporate Transparency Act has been aptly confusing and faking businesses out for months.
So, SCOTUS did its part to fake us out this week. They lifted an injunction that had been stopping the implementation of the Act. Many took that to mean that they were going to have to fill out and file a form fairly quickly, since the original filing deadline was Jan. 1.
Well, guess what? What most people didn’t realize was that there was another injunction that has not been lifted.
So the federal agency that was in line to receive all those 33 million reports from small business came out and explained that no one had to file reports yet. The Financial Crimes Enforcement Network (FinCEN) came out on Jan. 24 after the SCOTUS decision on Jan. 23 and explained that an injunction issued by an East Texas judge was still in place. A hearing on the appeal of that case was scheduled for oral arguments on March 25 in the Fifth Circuit Court of Appeals, ("Federal Agency: Small Businesses Don't Have to File Beneficial Ownership Reports," theepocktimes.com, 01/26/2025).
If you think that sounds clear, you haven’t heard the details. SCOTUS lifted an injunction issued by Judge Amos Mazzant on Dec. 5, 2024, ruling from the Eastern District of Texas Mazzant ruled that the Act and the reporting requirement were likely unconstitutional.
Remember, all SCOTUS did was lift the injunction. In keeping with their custom, they didn’t do any more than they had to. So they didn’t rule on the merits of the case, just lifted that injunction.
But there was another case in the Eastern District of Texas, and the judge in that case, Judge Jeremy Kernodle, enjoined the law on Jan. 7. That case is under appeal to the Fifth Circuit.
And as would be expected when the government is trying to find money laundering, businesses with more than 20 employees and $5 million in sales and a U.S. office qualify for exemptions from reporting requirements under the Act. Don’t ask us how that makes sense.
As we have reported before, consult with your attorney or tax professional. But don’t be surprised if they are reluctant to give you a final decision.
Our address: Agribusiness Freedom Foundation, P.O. Box 88179, Colorado Springs, CO. 80908.
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