TREASURY DEPARTMENT ANNOUNCES NARROWING OF CTA REPORTING RULE
The Corporate Transparency Act (CTA), which went into effect on January 1, 2024, was designed to combat financial crimes like money laundering and tax fraud. Under the CTA, “reporting companies” are required to disclose certain information about their “beneficial owners” to the Financial Crimes Enforcement Network, a bureau within the Treasury Department. However, since it became effective, the CTA has faced ongoing legal challenges, leading to periods of unenforceability.
On March 2nd, the Treasury Department announced that it will not impose any penalties or fines on reporting companies for noncompliance with the CTA beneficial ownership information reporting rule. The Treasury Department also announced that it intends on issuing a proposed rulemaking to narrow the scope of the rule to foreign reporting companies only.
The Treasury Department’s official press release about its March 2nd announcement can be found here: https://home.treasury.gov/news/press-releases/sb0038
The attorneys at Dvorak Law Group are closely monitoring guidance from the Treasury Department regarding the CTA, and they are ready to advise you on the latest developments and how your business may be impacted.
About Dvorak Law Group, LLC
Dvorak Law Group, LLC is a full-service business, estate and wealth transfer planning, and litigation law firm with offices in Omaha, Hastings, Sutton, and Columbus, Nebraska, and Sioux Falls, South Dakota. It serves individuals, businesses, non-profit organizations, and government entities in Nebraska, South Dakota, and throughout the country. To learn more about Dvorak Law Group, visit www.dvoraklawgroup.com.
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