Poe: Corporate Transparency Act On Hold

Local business owners should hold off on filing the paperwork necessary to comply with the Corporate Transparency Act.

Highlands Economic Partnership Vice President Adam Poe said the new requirements are at a standstill due to a nationwide injunction issued by a federal judge.

“I don’t think that there’s any advantage of filing that right now because a lot of stuff is going to be changing over the next two weeks. And so I think that this is kind of a holding pattern until the injunction is renewed under the new administration.”

Poe said businesses should continue to rely on their local chambers of commerce to stay informed about any future progress on the act. Poe said the act is meant to create more transparency with shell organizations designed as tax shelters for the subsidiaries underneath them.

Poe said there has been no information released to the public about how the discussion is going or how long the matter will take to resolve.

“This is such a level above where I am at as far as federal policy that I have no clue what to expect on that,” Poe said.

Poe said he has no specific insights on the matter but he expects that there would be an extended window to file the paperwork without penalties if the act is passed in the future. Poe said he thinks the issue will get pushed to the back burner because of the other changes that are expected to come through as part of Trump’s new administration.

“That’s just what my gut tells me,” Poe said. “I have no reason to think that from what somebody has told me, that’s just what my gut’s saying.”