After the Western District Court of Michigan ruled in favor of the Small Business Association of Michigan’s (SBAM) lawsuit against the enforcement of the Corporate Transparency Act, SBAM President & CEO Brian Calley issued the following statement:
“Small businesses can breathe a sigh of relief today after Judge Jonker of the Western District Court of Michigan ruled the Corporate Transparency Act (CTA) as unconstitutional and a violation of the Fourth Amendment. The CTA threatened to negatively impact Michigan’s smallest businesses with heavy fines and criminal penalties for noncompliance.
“While the CTA may have been designed with good intentions, its approach was a complete government overreach and we appreciate Judge Jonker for recognizing that and ruling in support of Michigan’s small businesses. This ruling is a huge victory for small business owners and affirms their constitutional rights.
“At the same time we celebrate this win, we acknowledge that the IRS is scaling back this rule via the executive rule making process. However, the same process being used to scale it back today could be used in the future to expand it. This decision is important to prevent future administrations from broadening enforcement.” SBAM continues to provide updates to their members and small businesses statewide. You can read more about the Corporate Transparency Act and the resources being provided by visiting this resource page.