A Georgia lawyer is seeking a federal injunction to block a provision of the Corporate Transparency Act (CTA), arguing that it forces attorneys to breach attorney-client privilege, violating the U.S. Constitution. The CTA, passed in 2021, mandates that law firms disclose privileged information about the ownership of corporate entities, which the lawyer claims infringes on constitutional protections.
In a legal filing submitted Thursday to a Georgia federal court, attorney Paul Spizzirri contended that the CTA, aimed at combating illegal activities like money laundering, tax fraud, and drug trafficking, imposes undue burdens on lawyers and their clients. The law requires companies to report detailed ownership information, including the names, dates of birth, and identification numbers of individuals owning 25% or more of a company. This provision applies to more than 30 million entities formed before 2024, with the original deadline for compliance set for January 1, 2025.
Spizzirri argued that the CTA is an “unconstitutional intrusion” on the rights of clients and their attorneys, contending that it lacks legitimate legislative authority. He pointed to the Supreme Court’s ruling in Loper Bright Enterprises v. Raimondo, which ended the Chevron doctrine that had previously deferred to agency interpretations of laws, suggesting that the court should not defer to the U.S. government’s view of the CTA.
