The U.S. Department of the Treasury suspended enforcement of the Corporate Transparency Act (CTA) for U.S. citizens and domestic reporting companies. On Sunday night, the Treasury announced that U.S. citizens and domestic reporting companies will no longer face penalties or fines for failure to report under the CTA.
In its announcement, the Treasury stated it plans to issue a proposed rulemaking that will narrow the reporting requirements only to foreign reporting companies. The Treasury stated that the proposed rule is “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.”
The Treasury’s announcement may signal the end of the CTA reporting saga. However, given the recent back and forth on the matter, we hope to hear a definitive ruling in the near future.
