Department of the Treasury Halts Enforcement of CTA against US Citizens and Entities
On March 2nd, the US Department of the Treasury issued a press release stating that it would not enforce against U.S. citizens or domestic “reporting companies” any penalties or fines that could have been levied in connection with non-compliance with the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA). The press release made clear that penalties would not be enforced both with respect to failure to comply by the current deadline (March 21, 2025) or after forthcoming rule changes take place.
In addition, the Department of the Treasury stated its plan to issue a proposed rulemaking (regulation) that would narrow the scope of the CTA to foreign reporting companies only, so as to avoid burdening US small businesses.
Katz Chwat will continue to monitor and provide updates as they become available.