Charleston, W.Va. – Just a week after WV Secretary of State Kris Warner and 19 other secretaries of state and chief state business officials from across the country sent a letter to President Donald Trump voicing their strong concerns with the federal overreach of the Corporate Transparency Act (CTA), the Trump administration announced earlier this week that the CTA will be suspended immediately.
The U.S. Department of Treasury announced that the CTA will not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines. The Treasury Department stated that it will further be issuing a proposed rulemaking that will narrow the scope of the rule to only apply to foreign reporting companies.
The CTA, passed by Congress in 2021, required millions of small business owners to provide their personal information to the U.S. Treasury Department’s Financial Crimes Network (FinCEN). Failure to comply with the reporting requirements or missing deadlines could result in substantial fines and penalties.
“This Biden Administration rule was federal government overreach at its worst,” said Secretary Warner. “I was proud to stand with secretaries and business officials throughout the country to oppose enforcement of the Corporate Transparency Act.”
According to Warner, West Virginia’s 153,000 corporations, nonprofits, and charities already file Annual Reports with the state. Warner applauded the Trump administration’s swift response to the letter sent last week urging the President to suspend the CTA.
“I’m encouraged that the quick response by President Trump and his administration means this federal overreach will stop,” Warner said. “Whether it’s business registration or voter registration, the federal government needs to leave those responsibilities to the states.”
