Reported by Teresa Moss

A year extension to the filing deadline for the Corporate Transparency Act (CTA) is buried in the text of a congressional continuing resolution to fund the government proposed by the U.S. House of Representatives.

An injunction, issued by the U.S. District Court for the Eastern District of Texas earlier this month, already halts the Jan. 1 deadline required by the CTA. Had the deadline remained, businesses that missed it would’ve faced up to two years imprisonment, fines up to $10,000, and civil penalties up to $591 per day. 

However, the U.S. Department of Justice appealed the preliminary injunction to the U.S. Court of Appeals for the Fifth Circuit. If the injunction were overturned with an appeal, businesses could face a possible limited reporting timeframe. 

The spending bill could give some relief to business owners if passed by Congress. Language on page 223 in Section 122 gives an extension of the filing deadline for any pre-existing reporting companies. 

“United States Code is amended by striking ‘before the effective date of the regulations prescribed under this subsection shall, in a timely manner, and not later than 2 years after the effective date of the regulations prescribed under this subsection,’ and inserting ‘before January 1, 2024, shall, not later than January 1, 2026,’” according to the bill text. 

More than a 100 associations that support small business sent a letter to Congress Wednesday praising the language found in the resolution

Read full report: https://www.repairerdrivennews.com/2024/12/19/congressional-continuing-resolution-to-fund-spending-also-extends-cta-filing-deadline/