Respite from the CTA
What has happened?
On March 2, 2025, the United States Treasury Department (the “Treasury Department”) issued updated guidance regarding the enforcement of the Corporate Transparency Act (“CTA”) and its related regulations.
What does this mean?
The Treasury Department announced March 2, 2025, that penalties and fines under the CTA will not be enforced against U.S. citizens or domestic reporting companies or their beneficial owners. Further, the Treasury Department has committed to issuing a new proposed rulemaking that will narrow the enforcement of the CTA to foreign reporting companies only.
What is next?
Pending further guidance from FinCEN or the Treasury Department, it appears that the CTA and its related regulations will not be enforced against domestic entities at this time.
McGrath North will continue to monitor this fluid situation in order to provide updates as necessary. If you have any questions or if you need any assistance with CTA compliance, please don’t hesitate to contact your McGrath North attorney.
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