Recently, the courts ruled that the Corporate Transparency Act was enforceable following further litigation between affected parties and the government. However, on Sunday, President Donald Trump and the US Department of Treasury announced the suspension of enforcement.
Previously, the 5th Circuit granted an injunction against it. But on January 23rd, the Supreme Court reversed the injunction pending the 5th Circuit’s review of the CTA’s constitutionality.
Meanwhile, on January 7th, the US District Court of Eastern Texas granted another injunction in a separate case. However, on February 18th, that district court lifted its injunction, citing the US Supreme Court ruling of January 23rd.
On Sunday, the Treasury Department announced that it would not enforce any penalties or fines associated with the rule against US citizens or domestic reporting companies. The Treasury Department will be issuing a rulemaking that will narrow the scope to foreign reporting companies only.
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