The Treasury Department announced on March 2 it will not enforce penalties or fines related to the Corporate Transparency Act.
The CTA, which was signed into law in January 2021 and had its enforcement decision headed to the Supreme Court, is an anti-money laundering measure that requires businesses to report beneficial owners to the Financial Crimes Enforcement Network (FinCEN).
The Treasury Department said it will be issuing a proposed rulemaking that will limit the regulations to foreign reporting companies. The move is aimed to support American taxpayers and small businesses ensuring the rule serves the public interest.
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The original deadline for companies to submit their Beneficial Ownership Information reports to FinCEN was set for Jan. 1, but it had been repeatedly delayed and suspended by federal courts.
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