Radiology practices get reprieve from Corporate Transparency Act reporting requirements
Radiology practices are getting a reprieve from reporting requirements under the newly established Corporate Transparency Act.
The Trump administration recently announced it will not enforce penalties for failing to adhere to the March 21 deadline tied to the CTA. Established in 2020 as part of the Federal Anti-Money Laundering Act, the law mandates that millions of small- and medium-sized businesses must publicly report details about their ownership or face fines.
On Friday, the American College of Radiology alerted its members about the delay in enforcement. ACR last month had “strongly” urged imaging groups to seek counsel over the CTA’s requirements.
“Although the government decided to postpone enforcing the act, the underlying law remains in effect,” ACR said March 14. “Congress will have to repeal or modify it if the Treasury Department eventually concludes that the law is no longer necessary. ACR will continue to monitor developments related to the act and provide updates.”
The Treasury Department is expected to soon issue new regulation clarifying details for entities that must disclose ownership information. Reportedly, the Financial Crimes Enforcement Network intends to further extend deadlines and propose changes to the rule. Authorities are undertaking these updates as they seek to “minimize the burden on small businesses,” McDermott Will & Emery reported earlier this month.
Members of Congress also recently proposed a bipartisan bill called the Protect Small Businesses from Excessive Paperwork Act. The legislation would extend CTA filing deadlines to Jan. 1, 2026, while the Treasury Department educates businesses about the new requirements. A recent survey reportedly found that 80% of organizations were unaware of the obligations and related compliance costs.
The bill passed in the House on Feb. 11 and awaits consideration in the U.S. Senate. Multiple lawsuits have challenged the constitutionality of the Corporate Transparency Act and its implementation. A federal trial court previously imposed a nationwide injunction on enforcing the CTA, which the feds appealed.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.