On March 2, 2025, the U.S. Department of Treasury announced that it will not enforce any penalties or fines associated with beneficial ownership information (“BOI”) reporting requirements of the Corporate Transparency Act (“CTA”) under the existing regulatory filing deadlines. Further, the Treasury Department indicated it will issue a proposed rulemaking to narrow the scope of the reporting requirements to foreign reporting companies only, meaning that U.S. citizens and domestic reporting companies will be exempt from the CTA requirements.
Treasury Secretary Scott Bessett said, “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.”
Under the CTA, foreign reporting companies are companies formed under the law of a foreign country that have registered to do business in a U.S. state by filing a document with the secretary of state of that U.S. state, or similar office.
Treasury’s announcement is not necessarily surprising, given just days ago, on February 27, 2025, the Financial Crimes Enforcement Network (FinCEN) hinted that there could be significant changes to the CTA rules, when it announced that it would not issue fines or penalties in connection with the failure to file BOI reports by the current March 21, 2025 deadline, and that no enforcement actions would be taken until a forthcoming interim final rule and new filing deadlines took effect.
The Treasury Department’s action could be challenged in court, but for the foreseeable future, U.S. citizens and domestic reporting companies are no longer required to file BOI reports or updates.
The information in this article is informational in nature and should not be taken as formal legal advice. You should consult an attorney for advice regarding your individual situation.
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