The National Small Business Association urged the Supreme Court to review the Corporate Transparency Act’s (CTA) constitutionality, arguing in a new reply brief that the government is improperly trying to sidestep judicial review through administrative rulemaking. (National Small Business United v. Bessent, No. 25-1201, 9/9/2026)

The CTA, signed into law in 2021, was intended to help law enforcement and regulators uncover layered corporate structures that facilitate illicit activities such as tax evasion, money laundering, and trafficking. However, the CTA and its reporting regulations faced constitutional challenges — and the Treasury Department ultimately excluded U.S. persons and entities from reporting requirements in an August 14, 2026, final rule.

Before Treasury scaled back reporting, the 11th U.S. Circuit Court of Appeals upheld the law in National Small Business United v. Bessent, finding the CTA to be a constitutional exercise of Congress’ power under the Commerce Clause.

To dig deeper, visit the original article on the Thomson Reuters blog.