Compliance requirement suspended pending Supreme Court Review, but it has been a long road and it is not over yet.
The Corporate Transparency Act (CTA) was supposed to make small businesses share personal information about their owners with the government. The intention is to stop tax fraud and money laundering, but some people think it is too invasive and allows the government to gather too much information about citizens and businesses, giving it too much control.
Recently, a judge in Texas said the government can't force businesses to follow this rule right now. That means small businesses don’t have to send in their information by the original deadline of January 13, 2025, at least until the Supreme Court decides what happens next.
The Treasury Department is letting businesses share their information voluntarily at no cost at https://fincen.gov, but it’s not required for now.
For now, small businesses don’t need to worry about penalties or fines related to this law, but the fight in court isn’t over. Stay tuned for updates!
Thank you to Karen Ensley and Brian Benitez, Ensley Benitez Law PC, for these notes.
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