Companies should be aware that there are several pieces of pending federal legislation that would impact the implementation of the Corporate Transparency Act (CTA).
The Protecting Small Business Information Act of 2023, introduced in the U.S. House of Representatives on June 12th, would delay the effective date of FinCEN’s final rules implementing the CTA until after the Secretary of Treasury certifies to Congress, and makes the certification available to the public, that all of FinCEN’s final rules have been issued and that all the final rules will take effect on the same date.
Additionally, the Protect Small Business and Prevent Illicit Financial Activity Act, would amend the CTA to: 1) require that existing reporting companies have two years from the effective date of the regulations to file their initial reports with FinCEN; 2) require that reporting companies formed after the effective date of the CTA regulations have 90 days to file their initial report; 3) require that reporting companies have 90 days to file updated reports when their information changes; and 4) prohibit FinCEN for allowing reporting companies to indicate that they are unable to identify or obtain the required information on their report.