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NCLA Amicus Brief Asks Fifth Circuit to Maintain Block Against Corporate Transparency Act
GlobeNewswire News Roomยท 2025-03-03 19:04
Core Argument - The New Civil Liberties Alliance (NCLA) filed an amicus curiae brief urging the Fifth Circuit to uphold a preliminary injunction against the enforcement of the Corporate Transparency Act (CTA), which they argue is unconstitutional and exceeds regulatory authority [1][3]. Summary by Sections Corporate Transparency Act (CTA) Overview - The CTA requires organizations incorporated under state law to submit detailed reports containing sensitive information to the Department of the Treasury, with civil or criminal penalties for non-compliance affecting over 30 million organizations nationwide [2]. Legal Arguments Against CTA - The government claims the CTA is authorized by the Constitution's Commerce Clause, but the NCLA argues that incorporation does not constitute economic activity, as it does not involve the production, consumption, or exchange of goods or services [3]. - The NCLA contends that the government's request to limit the injunction to only the corporate entities involved in the Texas case is flawed, as the Administrative Procedure Act allows for a nationwide injunction against the CTA [4]. NCLA's Position - NCLA emphasizes that regulating based solely on a corporation's status as a commercial actor would lead to boundless governmental power, undermining the concept of limited government [5].