If you’ve been watching the tennis match of the Corporate Transparency Act (CTA) which has been going back and forth since 2021 – we now have game and set. On March 2, the U.S. Department of Treasury announced that it will no longer enforce the Corporate Transparency Act or the associated Beneficial Ownership Information reporting requirements for U.S. citizens and domestic reporting companies. Additionally, it will not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, nor will it do so after the forthcoming rule changes take effect. For all businesses – there is no compliance needed.
The last question, is this game, set and match? We have to wait on the match to be called but the Treasury Department indicated it will be issuing a proposed rulemaking to narrow the scope of the rule to foreign reporting companies only. If this occurs, then for almost all US businesses any new version of the CTA will have no further effect or requirements. The ICCFA will continue to monitor the CTA through any further developments and will provide updates as necessary.
