Right before I left the office today I saw an email from the U.S. Department of Treasury with the following in bold lettering:
FinCEN Permanently Ends Beneficial Ownership Reporting Requirements for Millions of Small Business Owners; Will Delete Information Previously Reported by U.S. Persons
In the last few years leading up to a January 1, 2024 effective date, business attorneys were learning about the Corporate Transparency Act (CTA) and the tedious compliance requirements for the countless businesses we assisted in forming. Some law firms created separate processes to handle compliance with the CTA.
We all breathed a sigh of relief when the rules changed and the majority of our small business clients were exempt from compliance.
Now we breathe even deeper…
“Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is issuing a final rule that permanently removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information to FinCEN under the Corporate Transparency Act. The final rule is effective on its publication in the Federal Register. FinCEN today also announced that it will delete previously reported information by U.S. persons—now exempt from the reporting requirements—from the beneficial ownership information database. Under the final rule, foreign entities that are reporting companies will still be required to report beneficial ownership information for foreign individuals.”
What a roller coaster ride our business clients have been on!
This is apparently the nail in the coffin, closure of a chapter…but man, what a ride…
Check out the official U.S. Department of Treasury press release here
