In a recent press release the US Treasury Dept announced that it will not be enforcing the “beneficial ownership” information section, 31 U.S. Code § 5336, of the Corporate Transparency Act (CTA), which mandates reporting of individuals who own or control certain business entities to the Financial Crimes Enforcement Network (FinCEN).
The Transparency Act is a violation of the Fourth Amendment because it forces small businesses to give personal information to the government without a warrant. The Fourth Amendment protects people from unreasonable searches and seizures, meaning the government can’t take private information unless there is a good reason and a legal process, like a warrant. The Transparency Act requires small business owners to report personal details, like their names, addresses, and IDs, to a government database. This is forced collection of private data without any suspicion of wrongdoing.
The Treasury Department said it won’t enforce the law, meaning no one will be fined or punished for not following it. That is not enough.
Just because a law is not being enforced now does not mean it won’t be enforced later.
The government could change its mind at any time and start punishing businesses that don’t comply.
A law that violates the Constitution should not be ignored—it should be erased.
Reference: https://home.treasury.gov/news/press-releases/sb0038