On Wednesday, new reporting requirements for roughly 32.6 million small businesses were preliminarily blocked by a federal court. The reporting mandate, known as “beneficial ownership information” under the Corporate Transparency Act(CTA), would have triggered penalties for business owners who had not complied by January 1, 2025. Before the court decision to halt the rule, small businesses with less than $5 million in annual revenue and less than 20 full-time employees were required to report on their ownership structure, business addresses, and other information to the Treasury Department. The Department reported in Oct. that it had only received 10% of the required submissions to comply before penalties would begin in 2025. It remains to be seen how new Treasury Department leadership in 2025 will handle the CTA and its reporting requirements, but Vice President-elect J.D. Vance has criticized the CTA and its burdens on small businesses. Read more.
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