Significant development in BOI reporting requirement
The never-ending saga around Beneficial Ownership Information (BOI) reporting required by the Corporate Transparency Act (CTA) continues with a significant development. According to a March 2 news release, the Treasury Department stated that it is halting all BOI/CTA enforcement activity against U.S. citizens and other reportable entities. This comes on the heels of a recent announcement by FinCEN that said FinCEN would announce revised BOI deadlines by March 21. Additionally, Treasury announced that it will be issuing “proposed rulemaking” that will “narrow the scope of the rule to foreign companies only.”
Copy of full news release
‘Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies’
March 2, 2025
The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.
“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent. “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”
This latest announcement by Treasury appears to signal that the risk of noncompliance will be considerably negated, but BOI/CTA remains fluid. Responsible parties should continue monitoring developments and consulting legal counsel as a primary outlet for assistance with reporting obligations.
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