Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act
By now we all have whiplash from the on again, off again requirements under the Corporate Transparency Act (CTA). As we recently reported, the U.S. District Court in the Eastern District of Texas ruled on February 18 that the requirement for most business entities to file a Beneficial Ownership Information Report (BOI) with FinCEN was back in effect. FinCEN issued a notice on February 19 that stated that the new deadline for most business entities to file an initial report is March 21, 2025.
This week the Treasury Department issued a press release that states that it will not enforce any penalties or fines associated with the BOI reporting rule under the existing regulatory deadlines and that it will not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after a forthcoming rule takes effect. The press release also stated that the Treasury Department will be issuing a proposed rulemaking that will narrow the rule to foreign reporting companies only.
Though the FinCEN and Treasury Department announcements do not have the force of law they do signal what seems to be a new direction with the new administration in regard to the CTA requirements.
If you have questions relating to the Federal Corporate Transparency Act or the New York State LLC Transparency Act, contact our business attorneys, Michael F. McConville at mmcconville@mccmlaw.com or 585-512-3520; Letty Laskowski at llaskowski@mccmlaw.com or 585-512-3538; Amy L. Varel at avarel@mccmlaw.com or 585-512-3506.
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McConville Considine Cooman & Morin, P.C. is a full-service law firm based in Rochester, New York, providing high-quality legal services to businesses and individuals since 1979. With over a dozen attorneys and a full paralegal support staff, the firm is well-positioned to right-size services tailored to each client. We are large enough to provide expertise in a broad range of practice areas, yet small enough to devote prompt, personal attention to our clients.
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