Business filing rules on hold as courts weigh Corporate Transparency Act

Off-again, on-again requirements for businesses to report ownership information to federal regulators are now off again, while provisions of the anti-money laundering U.S. Corporate Transparency Act (CTA) work their way through lawsuits and appellate courts.

Filing requirements under the CTA had been set to go into effect on Jan. 1 and then were postponed until Jan. 13 after an initial court injunction. Now, the U.S. Fifth Circuit Court of Appeals has postponed the requirements indefinitely until it reaches a ruling.

It is scheduled to hear oral arguments—for and against the CTA—in March.

Tom Sena, partner at accounting firm UHY, which has offices in Melville and Garden City, said the filing process is not burdensome for most.

“For most businesses, the filing itself isn’t really onerous.” He and other accounting professionals suggested that businesses may still wish to file voluntarily—or be ready to file immediately—should the stay be lifted once the appeals are exhausted.

Read the full article published by the Long Island Business News.