By the Office of Secretary of State Morales
Indiana Secretary of State Diego Morales applauds the U.S. Department of the Treasury’s announcement Monday, regarding suspension of penalties and fines under the Corporate Transparency Act (CTA) for failing to file or update business beneficial ownership information with the federal government. The Treasury Department confirmed that it will not enforce penalties or fines for non-filing beneficial ownership information reporting until March 21, and, in a significant new development, will not enforce non-filing penalties against U.S. Citizens or domestic businesses even after the rule changes take effect. According to the Treasury Department, after March 21 when updated rules take effect, only foreign owned businesses will be subject to penalties for not reporting beneficial ownership information.
“This decision is a positive step in supporting hardworking Hoosiers and small businesses by providing much-needed clarity and ensuring the rule is properly aligned with the public interest. As the Business Services Division is under our office, we remain committed to helping Indiana businesses thrive and grow with confidence,” said Diego Morales, Indiana Secretary of State.
The Treasury Department’s proposed rulemaking will focus specifically on foreign reporting companies, helping to tailor the rules in a way that advances the public interest while minimizing the impact on domestic businesses. This change comes as part of ongoing efforts to ensure that the Corporate Transparency Act is both effective and fair, particularly for American taxpayers and small businesses.
Additional information can be found here: https://fincen.gov/boi