On Friday we posted FinCEN Pauses Corporate Transparency Act Reporting Penalties Pending New Rule. By Sunday, the death spiral that appears to be the CTA continued, as the US Treasury Department announced suspension of enforcement of penalties and fines under the Act’s beneficial ownership reporting requirements for U.S. citizens and domestic reporting companies. This decision applies both to existing deadlines and future rule changes.
Additionally, the Treasury Department plans to propose a rule that will limit the regulation’s scope to foreign reporting companies. The move aims to ease regulatory burdens on American taxpayers and small businesses while ensuring the rule serves the public interest.
“This is a victory for common sense,” said Treasury Secretary Scott Bessent. “Today’s action aligns with President Trump’s commitment to cutting unnecessary regulations and supporting small businesses, the backbone of the American economy.”
As previously announced, FinCEN intends to issue rules by March 21 providing clearer guidance.
For more details, visit Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies.