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Tax Notes Quotes Bryan C. Skarlatos On Corporate Transparency Act Court Case

Bryan C. Skarlatos was quoted in a March 11, 2024 Tax Notes article titled “Beneficial Ownership Reporting and the Constitution” on the implications of a federal district court case ruling that the Corporate Transparency Act is unconstitutional and fails to satisfy the Commerce Clause. The article discusses the case, its ramifications, and includes advice from practicing attorneys in the corporate space.

From the article:

Practitioners advise clients to continue gathering their information and being prepared to comply with the CTA, given the government’s request for a stay of the injunction and the likelihood of appeal.

“The Court’s opinion is a very comprehensive analysis of an unusually narrow view of Congress’ power under the various provisions of the Constitution. In particular, it is hard to see how the formation of companies and similar entities, which exist almost exclusively to engage in economic activity, do not fall within the ambit of the commerce clause,” said Bryan Skarlatos of Kostelanetz LLP, predicting that the decision will be reversed on appeal. “Reporting companies would be well advised to continue to comply with the CTA in the foreseeable future.”

Click here to view the full article.