Corporate Transparency Act (CTA) update

In what looks to be nearing the end of the back and forth, on and off again, of the Corporate Transparency Act (CTA), the Treasury Department sent out a press release yesterday, March 2nd. They announced that they will not be enforcing any penalties or fines under the existing regulatory deadlines. They went on to say that they will not be enforcing any penalties or fines against U.S. citizens or domestic companies related to reporting. They are pushing forward with rulemaking to limit Beneficial Ownership Reporting to foreign reporting companies only. This will end the confusion for most companies across the country on the status of the CTA. With pretty harsh penalties and fines associated with noncompliance or reporting mistakes, businesses across the country will be breathing a little easier.

Since the CTA became effective last year, there has been a lot of back and forth regarding enforcement. Activities in the courts have had the CTA on and off again multiple times, making it hard for businesses to know what they needed to do to be in compliance.

The announcement yesterday will finally give businesses the answers they need to understand their responsibilities.

If you are a foreign reporting business, your best route would be to contact an attorney to guide you through your reporting responsibilities. You will not have any penalties or fines associated with missing the existing deadlines. New deadlines could be coming though. So, it would be a good idea to contact an attorney for assistance soon to make sure that you are ahead of any new deadlines that may be announced.

For more information on the CTA see my previous blog on the subject.

The press release from the Treasury Department can be found at the following link: https://home.treasury.gov/news/press-releases/sb0038?fbclid=IwY2xjawIy3J5leHRuA2FlbQIxMAABHQILOmznbq7w0TY7uYE3h2Ql5uOtOegXMhS738mXX3SlhlVGuQgMRYAiYA_aem_ieqjD1MqD_26ymig8ns2VA