As we all feel like the kids in the car asking “are we there yet?” when it comes to the Corporate Transparency Act, it looks like we’re finally close. On Sunday, March 2, the Department of Treasury announced in a series of tweets that it will “not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners” for failure to comply with the Corporate Transparency Act.
While the tweets did suggest that a final clarifying rule is forthcoming, it appears that the second Trump Administration has elected to decline to enforce the statute passed under the first Trump Administration.
We will continue to monitor the situation as it relates to non-U.S. beneficial owners and reporting companies. For now it seems that American businesses and business-owners can place their attention elsewhere – at least for the balance of this administration.
Below is the series of tweets consolidated into one announcement for easier reading:
The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associate[d] 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. “This is a victory for common sense,” said US Treasury @SecScottBessent “Today’s Action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”
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