US Treasury Department Release
On March 2, 2025, the United States Treasury Department announced that that it will not enforce any penalties or fines associated with the beneficial ownership reporting rule under the existing regulatory deadlines (currently March 21, 2025) pertaining to the Corporate Transparency Act (“CTA”). Furthermore, it announced that it will not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the recent and forthcoming rules changes are to take effect.
The Treasury Department also stated that it will soon be issuing a proposed rule that will significantly narrow the scope of the CTA rules to only apply to foreign reporting companies. As currently stated, “foreign reporting companies” are entities formed under the law of a foreign country that have registered to do business in the United States via a filing with a secretary of state or any similar office.
The Treasury noted that it was taking these steps “in interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.”
What’s Next?
At this time, the beneficial ownership interest report (“BOI Report”) deadline date of March 21, 2025 is suspended and no enforcement actions will be taken under the current rules. Domestic companies and U.S. citizens are no longer under any obligation to comply with the rules and requirements under the CTA.
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