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

Avatar photoByJohn R. 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: John R. Foust
Rusty Foust is a Knoxville-based estate planning attorney with a proven track record of helping families protect assets and secure financial legacies. A Certified Estate Planning Specialist, he personalizes every plan to fit clients’ unique needs, ensuring peace of mind. Rusty earned his J.D. from the University of Memphis and is admitted to practice in Tennessee and the U.S. Tax Court. He serves as Secretary of the Mid-South Forum of Estate Planning Attorneys and is a Board Member for Tapestry for Women, Inc.
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