In our last Corporate Transparency Act update, we reported that CTA enforcement had resumed, but we also noted that could change if the Trump Administration decided to change its approach to enforcing the CTA or defending it in court. Based on recent developments, it appears that is exactly what has happened.
Over the last few days, FinCEN and the Treasury Department have announced that they will not enforce any penalties or fines associated with beneficial ownership information reporting rules, even under the new regulatory deadlines (currently set for March 21, 2025). FinCEN specifically stated, “No fines or penalties will be issued, and no enforcement actions will be taken, until a forthcoming interim final rule becomes effective and the new relevant due dates in the interim final rule have passed.”
The Treasury has indicated that it will be issuing proposed rules narrowing the scope of the CTA to foreign companies only. FinCEN noted that the interim rule should be released no later than March 21, 2025.
FMJ is continuing to monitor CTA developments in real time. For now, we know that the federal government will not enforce the CTA for non-compliance. Therefore, BOI reporting is, effectively, in voluntary status. The CTA is still technically in effect, and we will see what the government decides to do as the rulemaking process plays out. There are also multiple lawsuits continuing to work their way through the appellate courts. FMJ will continue to issue updates as new information becomes available. In the meantime, if you have any questions, please contact Attorneys Pat Shriver or Brad Hutter.
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