Written on March 11th, 2025 by Rachel L. Wright.
The Corporate Transparency Act (CTA) remains in effect despite ongoing litigation challenging its provisions. While the U.S. Department of the Treasury has announced that it will not enforce penalties for noncompliance at this time, the March 21, 2024, reporting deadline still stands. Businesses and individuals subject to the CTA should be aware that the law remains on the books, and its reporting requirements have not been suspended.
Given this legal landscape, it is prudent to proceed with compliance, particularly for entities bound by contractual covenants requiring adherence to applicable laws. Choosing not to report could create unnecessary legal and financial risks, including potential breaches of obligations under financing agreements or other contracts. This is true even though enforcement may be uncertain.
Additionally, concerns regarding personal privacy under the CTA should be viewed in context. Government agencies have historically had access to certain personal information, such as driver’s license details and addresses, through existing legal frameworks. The CTA’s reporting requirements may expand government access to beneficial ownership information, but they do not introduce an entirely new concept of governmental data collection.
Tiveron Law’s standard practice is to report beneficial ownership information for every entity we create, ensuring compliance with the CTA’s requirements. However, we recognize that the decision to report ultimately rests with our clients. If a client wishes to forgo reporting in light of the Treasury Department’s current stance on enforcement, they may advise us.
To find more information about the Corporate Transparency Act & Beneficial Ownership Information, visit the US Treasury Website.