Courts, Congress keep Corporate Transparency Act in flux
What does it mean for dental professionals before 2025?
Dentists potentially impacted by the Corporate Transparency Act are receiving mixed messages about whether they need to file for beneficial ownership, due in part to a recent court challenge and ongoing debate over the spending bill package before Congress.
With the future of the Corporate Transparency Act beneficial ownership filing deadline currently up in the air, the ADA is encouraging dental professionals to take precautions by preparing to file — or voluntarily filing — their reports by Jan. 1, 2025.
The original legislation, which was enacted to mitigate money-laundering operations, required small businesses to report information on beneficial ownership to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network by Jan. 1, 2025. However, in May 2024 a group of plaintiffs filed a lawsuit, Texas Top Cop Shop, Inc. v. Garland, alleging the Corporate Transparency Act oversteps Congress’ constitutional power to regulate interstate and foreign commerce and infringes on First Amendment protections.
On Dec. 3, U.S. District Judge Amos Mazzant ruled in favor of the plaintiffs, issuing a nationwide preliminary injunction blocking enforcement of the Corporate Transparency Act, and on Dec. 5, the U.S. Treasury Department appealed the order.
Then, on Dec. 13, the U.S. Department of Justice filed an emergency motion with the U.S. Court of Appeals for the 5th Circuit to stay the nationwide preliminary injunction. On the same day, the 5th Circuit accelerated the briefing schedule on its own initiative and is expected to issue a ruling by around Dec. 27.
Simultaneously, Congress is considering a bill to fund the government, known as a continuing resolution, that includes a provision to delay the Corporate Transparency Act filing deadline until Jan. 1, 2026. Republicans and Democrats in the House and Senate reached an agreement before the effort fell apart Dec. 18 after facing opposition from President-elect Donald Trump and Elon Musk. A Trump-supported funding bill failed in the House Dec. 19 in a vote of 235-174. The government must pass a continuing resolution by Dec. 20 at midnight to avoid a shutdown.
The American Dental Association continues to advocate for a delay of Corporate Transparency Act filing requirements. The Association signed onto a coalition letter urging inclusion of the delay in the funding package, known as the Further Continuing Appropriations and Disaster Relief Supplemental Appropriations Act of 2025. The letter said the bill would “provide much-needed relief to the Main Street business community, enable federal regulators to continue their education and outreach efforts, and allow various legal challenges to make their way through the courts.”
The Association also sent out a grassroots Action Alert Dec. 19 encouraging members to contact their members of Congress and urge them to include dentists’ priorities in any government funding bill. The alert noted that the bipartisan agreement would fund many key oral health workforce programs and delay the Corporate Transparency compliance deadline by one year.
“Without this delay, dental practices face uncertainty and potential penalties, distracting from your ability to provide care to patients,” the Action Alert said.
It is unclear what the future of the Corporate Transparency Act looks like at this time, but ADA News will continue to provide updates as they become available.
For more information or to file a beneficial ownership report, visit fincen.gov/boi. The ADA also created a Frequently Asked Questions page to assist dentists with questions they may have.
