In the long saga that is the reporting requirements put forth under the Corporate Transparency Act (CTA) we have yet another update. On Feb. 27, The Financial Crimes Enforcement Network (FinCEN) announced that it would not issue fines or penalties for any business that does not file Beneficial Ownership Information with the FinCEN until a forthcoming interim rule takes effect.
Previously, these reporting requirements had been subject to several court actions that paused the requirements, brought them back, paused them again and eventually brought them back with a deadline in late March. This announcement from FinCEN is welcomed by MRAA as the confusion around the original reporting requirements was made far worse with all the different actions taken by different courts throughout the country.
No later than March 21, 2025, FinCEN will issue an interim rule that will extend the reporting deadline, provide more clarity to those businesses that have to report and better target businesses of interest to national security. There will be a public comment period once the interim rule is issued and the MRAA, along with the Small Business Legislative Council, will review and provide comments on the interim rule that urge FinCEN to reduce or eliminate the burden on small businesses. Fortunately, this is something FinCEN itself has indicated as a goal for the interim rule.
U.S. Secretary of the Treasury Scott Bessent said in a press release, noting this change in policy, “this is a victory for common sense. Today’s action in part of President Trump’s bold agenda to unleash prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”
As always, MRAA’s advocacy team will keep you updated and informed of whatever reporting requirements result from this rulemaking process.
Submit your questions about the reporting requirements or to ask to how the MRAA is getting involved, please contact:
- Chad Tokowicz, MRAA Government Relation Manager, Chad@mraa.com
- Mike Sayre, MRAA Government Relations Director, Mike@mraa.com
