Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act

On March 2, the U.S. Department of Treasury announced the suspension of enforcement of the Corporate Transparency Act.

The announcement read, in part:

“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.”

ICSC had long opposed the CTA, which applied to privately held and many non-profit entities, including corporations, limited liability companies, limited partnerships, business trusts and other similar small business entities. Estimates indicated that as many as 35 million small businesses would have been forced to comply with the law’s reporting requirements.

For more information, contact Moutray McLaren at mmlaren@icsc.com.