CTA and BOI Reporting Requirements
The Treasury Department announced on Sunday, March 2, that it will no longer enforce the Corporate Transparency Act (CTA) or the associated Beneficial Ownership Information (BOI) reporting requirements for U.S. citizens, domestic reporting entities and their beneficial owners.
The announcement of non-enforcement includes:
penalties or fines associated with the BOI information reporting rule under the existing regulatory deadlines, and
any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes takes effect.
The Treasury Department also stated it will be issuing a proposed rule that will narrow the scope of the rule to foreign reporting companies only.
We advise you to monitor this development for further potential changes and the proposed rule that is supposed to narrow the scope of the rule. We can not guarantee that we will send notifications of future changes to the CTA and BOI reporting requirements.
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Caution: This explanation is general in nature and should not be used for specific planning. Contact a tax professional for your specific planning needs.