U.S. Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies

By Richard S. Ekimoto, Esq.

Yesterday, the U. S. Treasury Department issues a press release stating that it will not enforce the BOI Reporting Requirements against U.S. citizens and domestic reporting companies. The press release states, “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 information has not yet been updated on the Fincen website.

If the U. S. Treasury Department follows through, community associations in the United States would not be subject to penalties or enforcement actions for failing to file BOI Reports. Technically, the CTA still applies to domestic reporting companies and U.S. Citizens to file BOI Reports unless they qualify for one of the twenty-three (23) exemptions. However, the announcement would mean that there would be no penalties for violations or any enforcement of the law for U. S. citizens or domestic entities. Hopefully, FinCen will also consider revisions to its regulations to expand the number of entities exempt from the BOI Reporting Requirements.

Community associations that have not yet filed their BOI Report should refrain from doing so at this time.