Small business reporting requirement found unconstitutional by Alabama federal judge

By FATIMA HUSSEIN
Associated Press

WASHINGTON (AP) — In a blow to the Biden administration’s effort to increase corporate transparency, an Alabama federal district judge has ruled that the Treasury Department cannot require small business owners to report details on their owners and others who benefit from the business. Late Friday, U.S. District Judge Liles C. Burke decided that the Corporate Transparency Act, a landmark U.S. anti-money laundering law enacted as part of the National Defense Authorization Act for fiscal 2021, is unconstitutional on the grounds that Congress exceeded its powers in enacting the law.