On Sunday, March 2, 2025, the U.S. Department of the Treasury issued an announcement that the Treasury Department will suspend the enforcement of the Corporate Transparency Act against U.S. citizens and domestic reporting companies. The announcement did also say that the Treasury Department will be issuing proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only.
Unless the Treasury Department subsequently changes its position or a federal court issues an order directing the Treasury Department to enforce the CTA, the Treasury Department's announcement means there will be no fines or penalties for a domestic reporting company's failure to comply with the reporting requirements set forth in the CTA. Domestic reporting companies are still able to voluntarily report, however, there will be no penalties for failing to do so.
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