U.S. Companies No Longer Subject to CTA Enforcement, Treasury Confirms

Takeaway

• The Treasury Department announced on March 2 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.

On March 2, the U.S. Treasury Department announced that it would suspend enforcement of the Corporate Transparency Act (CTA) against U.S. citizens and domestic reporting companies. This means that no penalties or fines will be imposed for noncompliance with the beneficial ownership information reporting requirements under the current regulatory deadlines.

Additionally, the Treasury confirmed that once forthcoming rule changes take effect, U.S. citizens, domestic reporting companies, and their beneficial owners will remain exempt from enforcement. A proposed rulemaking will be issued to limit the rule’s applicability to foreign reporting companies only.

For more information regarding the CTA or how the new developments around the CTA may impact your business, please contact your local Dykema relationship attorney.