Treasury Department may fine small businesses $10,000 or more if they don't file this new report

Published On Dec 9, 2024, 8:28 AM

The U.S. Treasury Department is set to enforce a reporting requirement under the Corporate Transparency Act, which mandates many small businesses to submit beneficial ownership information by January 1, 2025. Failure to comply could result in fines of $10,000 or more and possible imprisonment. Current statistics indicate that only about 30% of the expected filings have been completed to date. A federal court has temporarily blocked enforcement of these rules, but businesses are still advised to file their reports to avoid penalties. This law aims to reduce financial crime by increasing transparency around business ownership.