03/07/2025
The Trump Administration Curbs Enforcement of the Corporate Transparency Act.
The U.S. Treasury Department said Sunday evening (03/02) that it will not take enforcement action against U.S. citizens or U.S. companies for failing to divulge ownership information under the Corporate Transparency Act (CTA). This decision is part of the Trump administration’s efforts to cut regulation for small businesses. The Treasury Department’s announcement on Sunday (03/02) also indicated it would not enforce any penalties or fines against U.S. citizens or U.S. companies even after FinCEN issues new rules before the latest March 21, 2025 reporting deadline and that Treasury would issue a proposed rule that will narrow the scope of the CTA to foreign reporting companies only.
According to a Wall Street Journal (WSJ) report from its Monday (03/03) edition:
“’This is a victory for common sense,’ Treasury Secretary Scott Bessent said in a statement Sunday. The ‘action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.’”
From a WSJ 03/03/25 editorial:
“Sen. Tommy Tuberville (R., Ala.) has called the CTA ‘an outright attack on the 32 million small businesses’ and introduced a bill to repeal it. Two federal district courts have found it unconstitutional, and there is continuing litigation across the country. The CTA remains on the books and could be revived by the next administration. The announcement gives Congress and the President the opportunity to make sure it doesn’t. Maybe the courts will do it for them. But instead of relying on the unknown outcome of litigation, Republicans can use their majorities in Congress to repeal this needless burden on small business.”
Let us hope that this Congress repeals this unconstitutional, draconian law in 2025!!
