The U.S. Department of the Treasury said it will no longer enforce an ownership reporting requirement that impacted an estimated 34 million small business owners.
The Corporate Transparency Act (CTA) was enacted in January 2021 and required most small businesses to share beneficial ownership information, meaning information about the identities of individuals with a significant ownership stake in the company.
The law was designed to counter illicit financial activity, including tax fraud, money laundering, and terrorist financing. Failure to adhere to the reporting mandate led to fines of up to $10,000 and a two-year prison term.
On Sunday, the Treasury announced it was suspending CTA enforcement against U.S. citizens and domestic reporting companies. The department shall “not enforce any penalties or fines associated with the beneficial ownership information reporting rule.”…