In a significant development, the U.S. Treasury Department has announced a suspension of the March 21, 2025, filing deadline under the Corporate Transparency Act (CTA) for all domestic companies and U.S. citizens.
The Treasury has indicated its intention to initiate a proposed rulemaking that would narrow the scope of the CTA's reporting requirements, focusing primarily on foreign reporting companies. These are defined as entities, including corporations and limited liability companies, formed under the laws of a foreign country that have registered to conduct business in the United States by filing with a state's secretary of state or a similar office.
This decision follows the lifting of the last remaining nationwide preliminary injunction on the CTA's enforcement by the Eastern District of Texas.
While the proposed narrowing of the CTA's scope could face legal challenges due to its potential inconsistency with the original text of the Act, it remains to be seen whether such challenges will materialize. Additionally, Congress is actively considering potential legislative changes to the CTA.
Source: National Law Review