More changes for the Corporate Transparency Act
There were several bills in Congress that, if passed, would alter or repeal the law, including House Resolution 125 and Senate Bill 100, the “Repeal the Big Brother Overreach Act.”
By Mary Hightower
U of Arkansas System Division of Agriculture
Fast facts:
- Treasury Department suspends CTA enforcement
- Treasury slated to propose new rules
- See Rumley’s article at Southern Ag Today
(260 words)
(Newsrooms: with file art of Rumley, Treasury Department logo)
FAYETTEVILLE, Ark. — The reporting requirements of the Corporate Transparency Act
— the anti-money laundering and tax evasion law that has been kicked around various
federal courts — will no longer be enforced, the Treasury Department said.
In a statement issued March 2, the Treasury Department said “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 department also said it would “be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only.”
Reporting required by the law began Jan. 1, 2024, and was expected to affect more than 32 million businesses, including more than 230,000 farm operations, according to the American Farm Bureau.
CTA background
Under the Corporate Transparency Act or CTA, most corporations, limited liability companies and similar entities were required to disclose their “beneficial owners”—individuals who own or control at least 25 percent of the business or exercise significant decision-making authority.
“Numerous court actions were filed challenging the requirement,” said Elizabeth Rumley, senior staff attorney with the National Agricultural Law Center. “The rulings since that time have gone back and forth, and we have seen a series of injunctions, with some courts prohibiting the enforcement of the law while other courts allowing it.
“After the most recent injunction was lifted, the Department of Treasury announced a mid-March 2025 deadline for compliance,” she said. After its March 2 announcement, “entities are not required to disclose their beneficial owners or comply with the existing CTA regulations.”
There were several bills in Congress that, if passed, would alter or repeal the law, including House Resolution 125 and Senate Bill 100, the “Repeal the Big Brother Overreach Act.”
To learn more about CTA, see Rumley’s article at Southern Ag Today.
To learn about extension programs in Arkansas, contact your local Cooperative Extension Service agent or visit www.uaex.uada.edu. Follow us on X and Instagram at @AR_Extension. To learn more about Division of Agriculture research, visit the Arkansas Agricultural Experiment Station website: https://aaes.uada.edu. Follow on X at @ArkAgResearch. To learn more about the Division of Agriculture, visit https://uada.edu/. Follow us on X at @AgInArk.
About the Division of Agriculture
The University of Arkansas System Division of Agriculture’s mission is to strengthen
agriculture, communities, and families by connecting trusted research to the adoption
of best practices. Through the Agricultural Experiment Station and the Cooperative
Extension Service, the Division of Agriculture conducts research and extension work
within the nation’s historic land grant education system.
The Division of Agriculture is one of 20 entities within the University of Arkansas System. It has offices in all 75 counties in Arkansas and faculty on three campuses.
Pursuant to 7 CFR § 15.3, the University of Arkansas System Division of Agriculture offers all its Extension and Research programs and services (including employment) without regard to race, color, sex, national origin, religion, age, disability, marital or veteran status, genetic information, sexual preference, pregnancy or any other legally protected status, and is an equal opportunity institution.
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Media contact: Mary Hightower
mhightower@uada.edu