The Department of the Treasury announced on March 2, 2025, that enforcing the Corporate Transparency Act (CTA) reporting requirement for U.S. citizens and domestic reporting companies has been suspended.
Furthermore, it announced that it would not apply penalties or fines related to the rule for reporting beneficial ownership information within the existing regulatory deadlines and will also not apply penalties or fines against U.S. citizens, domestic reporting companies, or their beneficial owners after the upcoming amendments to the rule become effective.
The Department of the Treasury will also publish proposed regulations limiting the rule’s scope to foreign reporting companies only. The Treasury is taking this action to support hardworking American taxpayers and small businesses and to ensure the rule is tailored to promote the public interest.
“This is a victory for common sense,” said U.S. Treasury Secretary Scott Bessent.
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
Scott Bessent
The Corporate Transparency Act (CTA) was designed to combat money laundering, terrorist financing, tax evasion, and other illicit activities involving anonymous companies in the United States.
The CTA required all companies organized or registered in the United States (both U.S. and foreign), except for specific exempt categories, to report all beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), an agency of the U.S. Department of the Treasury.
The suspension of the Corporate Transparency Act (CTA) is excellent news for those wishing to continue investing in the United States. However, questions arise about the law’s future scope.
Will we move toward abolishing the Corporate Transparency Act reporting and returning to the previous situation, or will the law only apply to foreign investors?
In my opinion, nothing is decided at this stage.
Contents
Frequently Asked Questions (FAQ) on Beneficial Ownership Reporting for the Corporate Transparency Act (CTA)
In the video, step by step, declare your beneficial owners :
In video: the suspension of the CTA
Other articles on administrative, financial, and tax information in the United States (USA)
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