National Groups Respond to Treasury’s Suspension of CTA Enforcement

The Treasury Department announced Sunday that it is suspending the enforcement of the Corporate Transparency Act (CTA) against U.S. citizens or domestic reporting companies or their beneficial owners. It also plans to issue a new rule to limit the reporting requirement to foreign reporting companies only.

U.S. Secretary of the Treasury Scott Bessent called the move “a victory for common sense.”  

The Treasury said in a release, “Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.”

Multiple national groups have reacted to the announcement.

National Cattlemen’s Beef Association Offers Thanks on Farmers’ Behalf

The National Cattlemen’s Beef Association (NCBA) “has represented America’s cattle producers since 1898, preserving the heritage and strength of the industry through education and public policy. As the largest association of cattle producers, NCBA works to create new markets and increase demand for beef.”

On Monday, the NCBA thanked President Trump and Bessent for suspending CTA enforcement and limiting its scope.

“Family farmers and ranchers across the country are breathing a sigh of relief thanks to President Trump and Secretary Bessent suspending the Corporate Transparency Act reporting requirements for American citizens,” said NCBA President Buck Wehrbein, a Nebraska cattleman. “We appreciate President Trump’s common-sense approach and continued support for rural America and the hard-working cattle producers who feed our nation.”

“For over a year, cattle producers have been extremely concerned with the ever-changing direction of the Corporate Transparency Act and the steep punishment associated with non-compliance,” said NCBA Executive Director of Government Affairs Kent Bacus. “Without President Trump’s intervention, millions of small business owners may have been in violation with the law. We greatly appreciate Treasury developing a new rule that provides certainty for small businesses and protects American agriculture.”

According to the statement, “NCBA continues to encourage cattle producers to consult with their attorney and/or tax professional about this latest development.” 

National Small Business Association Applauds Treasury for ‘Choosing Common Sense’

National Small Business Association Applauds Treasury for ‘Choosing Common Sense”

The National Small Business Association (NSBA) is a nonpartisan organization with more than 85 years of small-business advocacy expertise and over 65,000 members. NSBA represents “every industry and all 50 states.”

“Today is a good day for small business,” said NSBA President and CEO Todd McCracken in a release on Monday. “I applaud the administration for seeing this law for what it is: a massive burden on America’s job creators which will do next to nothing to actually stop money-laundering. We have been beating the drum on this flawed concept for three administrations now, and I’m glad our message has finally gotten through.”

According to the release, “NSBA has been leading the charge for years against the CTA and filed the first lawsuit in the nation against Treasury over this unfair regulatory regime, and warned lawmakers before the CTA even passed about the massive burden and invasion of privacy it would be for small businesses.”

National Agricultural Law Center Encourages Farmers to Remain Informed

The National Agricultural Law Center, a unit of the University of Arkansas System Division of Agriculture, is the nation’s leading source for agricultural and food law research and information. 

National Agricultural Law Center Senior Staff Attorney Elizabeth Rumley told Successful Farming Tuesday that there’s no risk to farmers for not filing at this time. “However,” she added, “this topic has been a moving target for months – it’s important to stay informed and seek guidance in case there are additional requirements added in the future.” 

Rumley said there could be pushback to the new rule the Treasury plans to propose to restrict the reporting requirement. “It’s possible that we’ll see challenges to the new rule after it is proposed, as the narrowed scope identified in the Department of Treasury statement seems to be inconsistent with the text of the law itself.” 

According to Rumley, there’s another factor to consider. “Congress is also considering changes to the CTA, with bills proposed in each chamber that would either extend the filing deadline or eliminate the requirements entirely,” she said.

Rumley referred to FinCEN’s website for any new information or requirements.