A requirement for an estimated 34 million small businesses to comply with the Corporate Transparency Act (CTA) by Jan. 13 is again on hold as the courts continue to determine its viability. Some legal experts are encouraging those businesses to comply now to avoid the possibility of harsh penalties down the road.
The CTA, passed as part of the National Defense Authorization Act in 2021, initially required federal reporting requirements for most small businesses by Jan. 1, 2025. Failure to do so would result in civil penalties of $591 per day (up to $10,000) and two years in prison.
