(NAED Government Relations) The U.S. Treasury Department has announced significant changes to the enforcement of the Corporate Transparency Act (CTA), a development that aligns with the National Association of Electrical Distributors’ (NAED) ongoing advocacy efforts to reduce regulatory burdens on our industry.
The Treasury will not impose penalties or fines related to the Beneficial Ownership Information (BOI) reporting requirements under the current deadlines. Following upcoming regulatory changes, U.S. citizens, domestic reporting companies, and their beneficial owners will be exempt from penalties and fines associated with BOI reporting. The Treasury also plans to issue a proposed rulemaking to limit the CTA’s application exclusively to foreign reporting companies, thereby alleviating domestic entities from compliance obligations.
NAED has been actively engaged in advocating for relief from the CTA’s reporting mandates. Most recently, NAED joined over 120 trade associations in signing a coalition letter urging the Treasury Department to delay the CTA’s implementation until at least the end of the year. As the letter to Treasury Secretary Scott Bessent highlighted, less than 30 percent of required filings had been submitted by December 1, 2024, just weeks before the original deadline, despite significant outreach efforts. Had the courts not intervened, millions of business owners would have faced compliance risks, potential fines, and even felony charges.
The legal uncertainty surrounding the CTA has only added to the confusion. Multiple court rulings have contributed to a volatile regulatory landscape. Given the ongoing legal challenges, NAED and its partners have called on the Administration to provide much-needed certainty by ensuring businesses are not unfairly penalized due to the shifting legal framework.
This policy shift represents a substantial victory for NAED members and the broader small business community. By narrowing the scope of the CTA, the Treasury acknowledges the importance of supporting American businesses and reducing unnecessary regulatory pressures. However, while this announcement is a step in the right direction, the fight is not over. NAED will continue working with our allies in the small business community and Congress to codify these administrative changes into law through legislative action.
This development underscores the effectiveness of our collective advocacy and the importance of continued engagement with policymakers to protect and promote the interests of the electrical distribution industry. Please stay tuned for more legislative and regulatory updates during this busy year in Washington, D.C.
For more information, contact NAED’s Director of Government Relations, Bud DeFlaviis.
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