The Corporate Transparency Act Whiplash

March 3, 2025   |   Aimee Moore

As an update to Sherrard Roe’s latest alert on the Corporate Transparency Act (CTA), the U.S. Treasury Department announced a significant policy shift in a Sunday evening news release. The department stated that it will not impose penalties or fines—now or in the future—related to the CTA or the associated Beneficial Ownership Information reporting requirements for U.S. citizens or domestic reporting companies. Furthermore, the U.S. Treasury Department plans to issue a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. In light of this new guidance and the anticipated changes to the reporting rules, domestic reporting companies should refrain from rushing to file, while remaining alert for updates on the potential impact of the forthcoming regulations.