Dodge Legal Group Business Alert: No CTA Penalties Updates on the Corporate Transparency Act (BOIR)
The U.S. Department of Treasury, which is the agency responsible for the Corporate Transparency Act (“CTA”), has announced today that it will not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect. It is possible that the reporting requirements may still apply to foreign companies doing business in the U.S. as President Trump posted on Truth Social that Treasury is working to “formally suspend this rule for American businesses.”
Additionally, a Michigan federal district court has ruled the CTA violates the 4th Amendment, which may also impact state versions of the CTA, such as in New York.
The CTA was originally enacted under the first Trump Administration and things are subject to rapid change in this second Trump Administration so we suggest you remain vigilant about further developments.
Clients of Dodge Legal Group SPC: If we helped you form your company with an effective date of 2024 or 2025, we will keep your business on our list and contact you directly should requirements change.