Treasury small business ownership rule on hold as court eyes constitutionality [Video]

An upcoming Treasury Department deadline for millions of small businesses to fulfill a new reporting requirement on “beneficial ownership information” was delayed again, following a court order that suspended enforcement.

The regulation, which would require small businesses to disclose the identity of people who directly or indirectly own a control a company, is designed to prevent criminals from hiding illicit activity conducted through shell companies or opaque ownership structures, the Treasury said.

The 5th U.S. Circuit Court of Appeals issued an order late on Dec. 26 that halted enforcement while the court “considers the parties’ weighty substantive arguments” on the constitutionality of the Corporate Transparency Act, which created the BOI reporting requirement, the order said.

The new deadline, which had been Jan. 13, is now unclear.

“While it is not known how long …