The Corporate Transparency Act (CTA) saga continues. Yesterday, the US Treasury Department issued a press release (full text below), effectively ending CTA as we know it by declaring that the Department will not enforce the current reporting deadlines and will not assess CTA fines or penalties against any U.S. citizens or domestic companies. This narrow vision for the future of the rule (which would limit reporting to foreign companies) would seem to end compliance obligations entirely for most small businesses. However, this has been a volatile area so the SBCA will continue to monitor whether this changes (again) and provide updates as we know more.
Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies
The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.
“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent. “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”
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