20 States and D.C. Sue Treasury Over Beneficial Ownership Reporting Rollback

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A coalition of 20 states and the District of Columbia filed a federal lawsuit October 27 challenging the Treasury Department rollback of beneficial ownership reporting requirements under the Corporate Transparency Act.

The complaint, filed in the U.S. District Court for the District of Oregon as Oregon v. Bessent, No. 6:26-cv-02359-MTK, challenges FinCEN exemptions for U.S.-formed entities. The states allege that Treasury exceeded its statutory authority. Those are allegations, not findings by the court.

What Businesses Must Do Now

Filing the lawsuit does not restore reporting requirements. FinCEN guidance continues to exempt U.S.-formed companies from beneficial ownership information reporting. Certain foreign companies registered to do business in the United States remain subject to the narrowed rule. Consult FinCEN guidance for current requirements.

Real estate companies often use LLCs to own property, making ownership transparency an important issue for property transactions and anti-money-laundering oversight.

Simple Content Summary

Twenty states and Washington, D.C., sued Treasury over beneficial ownership reporting exemptions. The lawsuit does not itself change current reporting obligations.