The Corporate Transparency Act has faced constitutional challenges since its first day of enforcement. Here is the complete litigation and regulatory timeline from enactment through the March 2025 domestic exemption.
By Alif Al Razi, Tax & Compliance Lead, Anonymousllc.co · Last updated 2026-05-21
Regulatory disclosure: Litigation is ongoing. The Fifth Circuit has not issued a final ruling on the merits in NFIB v. Yellen. Additional cases remain pending. Track current status at /boi/status-tracker/.
The CTA was enacted as part of the National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283). It directed FinCEN to establish a beneficial ownership reporting regime for certain entities.
FinCEN published the final rule (31 CFR 1010.380) implementing the CTA's beneficial ownership reporting requirements, effective January 1, 2024. The rule defined reporting companies, beneficial owners, company applicants, and the 23 exemption categories.
BOI reporting began. Entities formed on or after January 1, 2024 had 90 days to file (later shortened to 30 days for entities formed on or after January 1, 2025). Existing entities had until January 1, 2025.
The National Federation of Independent Business and others filed suit in the Eastern District of Texas (No. 6:24-cv-00336) challenging the constitutionality of the Corporate Transparency Act, arguing it exceeded Congress's enumerated powers.
Judge Amos L. Mazzant III of the Eastern District of Texas issued a nationwide preliminary injunction halting enforcement of the CTA. The court found plaintiffs were likely to succeed on the merits of their claim that the CTA exceeded Congress's powers under the Commerce Clause. FinCEN announced it would comply but appeal.
A Fifth Circuit motions panel granted the government's motion to stay the district court injunction pending appeal, briefly reinstating CTA enforcement. FinCEN announced extended deadlines.
The Fifth Circuit merits panel vacated the motions panel stay, reinstating the nationwide injunction. CTA enforcement was again halted.
The Supreme Court granted the government's application to stay the district court's preliminary injunction pending disposition of the appeal in the Fifth Circuit. CTA enforcement was reinstated. FinCEN announced new compliance deadlines.
FinCEN announced it would initiate rulemaking to revise the implementing rule, signaling intent to exempt domestic companies from BOI reporting. Enforcement was paused for domestic companies pending the rule.
FinCEN published an interim final rule (90 FR 13688) removing BOI reporting requirements for domestic reporting companies and their beneficial owners. Only foreign reporting companies remained obligated. The rule was effective immediately with a public comment period through June 2025.
NFIB v. Yellen is the lead case, but other lawsuits have challenged the CTA:
Several outcomes remain possible:
Anonymous LLC holders with domestic entities (formed in Wyoming, New Mexico, Delaware, Nevada, or any other US state) are currently exempt from BOI reporting regardless of the litigation outcome. The March 2025 interim final rule exempts them independently of the court cases.
The risk scenario: FinCEN reverses the domestic exemption via a new final rule AND the courts uphold the CTA as constitutional. In that case, domestic company owners would need to file BOI reports, and anonymity at the state level would not extend to the federal FinCEN database.
We monitor every development and update our BOI status tracker monthly minimum. If action is ever required, we will notify active clients directly.
If your entity is a foreign reporting company and must file, Anonymousllc.co handles it end to end for $150. Domestic company owners - no action needed today.