The U.S. Treasury Department announced on March 2, 2025 that it will not impose any penalties or fines related to the Corporate Transparency Act’s (CTA) beneficial ownership reporting requirements, either under the current deadlines or after upcoming rule changes take effect. Additionally, the Treasury plans to revise the rule so that it applies only to foreign companies, not U.S. citizens or domestic businesses.
This recent update suggests that the Corporate Transparency Act and its reporting requirements no longer apply to U.S. citizens or domestic reporting companies, including community associations.
A proposed rule narrowing the CTA’s scope to foreign reporting companies is anticipated later this month. In the meantime, CTA enforcement remains suspended.
From the March 2, 2025 U.S. Treasury Department statement:
“The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.”
Read the full statement here: https://home.treasury.gov/news/press-releases/sb0038
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KSN will continue to monitor the situation, the status of the Corporate Transparency Act (CTA), and its impact on community associations.
You can reach KSN by calling 855-537-0500 or visiting our website at www.ksnlaw.com.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
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