Most U.S. Companies No Longer Need to File Under CTA

Avatar photoByNeva Foust

A recent development from FinCEN brings welcome news for many U.S. businesses.

A newly issued interim final rule significantly scales back reporting obligations under the Corporate Transparency Act, easing compliance concerns for domestic companies.

The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) recently released an interim final rule, narrowing the scope of the Corporate Transparency Act (CTA). Under the new rule, U.S. companies are no longer required to submit Beneficial Ownership Information (BOI) reports, with the exception of foreign companies operating in the U.S. and their foreign beneficial owners.

According to The National Law Review, this change significantly reduces the compliance burden, with FinCEN estimating a 99.8% reduction in the number of companies required to report. The rule follows a series of legal challenges to the CTA, including a suspension of enforcement earlier last month. FinCEN is soliciting comments from the public on the interim rule, noting it will assess requested exemptions as appropriate. A final rule is expected this year.

By: Neva Foust
Neva Foust is a Knoxville-based probate and elder law attorney with a distinctive blend of legal expertise and financial insight as a Certified Public Accountant. She specializes in guiding families through estate administration and elder law matters, combining legal precision with financial acumen to deliver comprehensive solutions. A compassionate and attentive advocate, Neva focuses solely on probate and elder law, ensuring personalized, tailored services. She earned her J.D., Magna Cum Laude, and MBA from Lincoln Memorial University and holds a CPA certification. Neva is a member of the Tennessee and Knoxville Bar Associations, recognized for her professionalism and dedication.
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