By Kelly Phillips Erb | Forbes
A lawsuit filed in the Eastern District of Texas has upended another Treasury reporting rule—this time targeting residential real estate transactions.
Months after the Treasury announced it would not enforce the Corporate Transparency Act (CTA) against domestic companies, a new challenge—Flowers Title Companies LLC d/b/a East Texas Title Companies v. Bessent—has resulted in a federal court striking down a separate reporting regime focused on cash purchases of residential real estate. By FinCEN’s own calculation, the number of reportable transfers would have been between approximately 800,000 and 850,000 annually, costing between approximately $428.4 and $690.4 million in the first compliance year.
