While the case wends its way through the courts, the U.S. House and Senate are also looking at CTA and have put forth several bills to modify the deadlines or eliminate CTA altogether.
By the U of Arkansas System Division of Agriculture
Fast facts
- FinCEN sets new March 21 filing deadline
- Congress considering CTA bills
- Monday ruling the latest volley in law’s active legal journey
FAYETTEVILLE, Ark. — The Corporate Transparency Act, a law aimed at combating financial crime, is back in play with a new filing deadline after federal district judge lifted a stay he imposed last month.
“Since the stay has been lifted, the CTA is again enforceable,” said Elizabeth Rumley, a senior staff attorney at the National Agricultural Law Center. The law is enforced by FinCEN, the federal Financial Crimes Enforcement Network, part of the U.S. Treasury Department. “FinCEN has set a new deadline of March 21 for the majority of reporting companies.”
On Monday, Judge Jeremy Kernodle of the Eastern District of Texas lifted the stay he put in place Jan. 7.
The Corporate Transparency Act is a federal law aimed at combating financial crimes such as money laundering and tax evasion. Under the CTA, most corporations, limited liability companies and similar entities are required to disclose their “beneficial owners”—individuals who own or control at least 25 percent of the business or exercise significant decision-making authority, Rumley said.
Congressional action
While the case wends its way through the courts, the U.S. House and Senate are also looking at CTA and have put forth several bills to modify the deadlines or eliminate CTA altogether.
On Feb. 10, the U.S. House unanimously passed H.R. 736, which would extending CTA’s filing deadline until Jan. 1, 2026. The proposal has moved to the Senate for consideration. The Senate is also considering S. 505, which would also modify the deadline for filing beneficial ownership information reports for reporting companies formed or registered before Jan. 1, 2024.
These House and Senate bills would postpone the deadline but leave the reporting requirements intact.
Other legislation, introduced as H.R. 125 and S. 100, the “Repealing Big Brother Overreach Act,” would repeal the CTA entirely. The bills are under committee consideration in their respective chambers.
Internal review
FinCEN has also said it “intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.”
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