The US Department of the Treasury has announced it will not impose any fines or penalties against US citizens, domestic reporting companies, or their beneficial owners for failure to file beneficial ownership information (BOI) reports under the Corporate Transparency Act (CTA) by existing deadlines. Furthermore, newly proposed legislation will substantially limit the CTA’s applicability to foreign reporting companies only.
The US secretary of the treasury stated that this action was taken to ease regulatory burdens on small businesses, which are the backbone of the American economy.
Applicability of the CTA pending final legislation is as follows:
Attorneys at Barclay Damon will continue to monitor further guidance regarding the CTA and assist clients in navigating any questions.
If you have any questions regarding the content of this alert, please contact Danielle Katz, counsel, at dkatz@barclaydamon.com; Karina Shahine, associate, at kshahine@barclaydamon.com; or another member of the firm’s Corporate Practice Area.