In a significant move, the U.S. Treasury Department announced the suspension of Corporate Transparency Act (CTA) enforcement against American citizens and domestic companies. This decision offers relief to countless small businesses that faced potential criminalization under the Act's beneficial ownership information (BOI) reporting requirements.
The CTA, initially vetoed by President Trump but later enacted by Congress, mandated small business owners to register with the Financial Crimes Enforcement Network (FinCEN). Non-compliance, late filing, or incorrect filing carried hefty penalties. The Treasury's announcement effectively nullifies these requirements for U.S. businesses and individuals, eliminating the threat of fines and legal repercussions.
President Donald Trump and Treasury Secretary Scott Bessent (Getty Images/Photo illustration)
This suspension aligns with Treasury Secretary Scott Bessent's commitment to prioritizing Main Street businesses. Bessent emphasized during his confirmation hearing the importance of a small business-led economic recovery. The Treasury's action reflects this commitment, providing tangible support to small businesses and entrepreneurs.
While this suspension provides immediate relief, small businesses are encouraged to advocate for a permanent legislative change, limiting the CTA's BOI rule to foreign companies only. This would prevent future administrations from reinstating the burdensome requirements.
