Enforcement of the Corporate Transparency Act (“CTA”) and its Reporting Rule requiring Beneficial Ownership Information (“BOI”) reports has been suspended as of March 2, 2025.
On this date, the U.S. Department of the Treasury provided much-needed clarity for businesses regarding the CTA and BOI reports amidst ongoing legal challenges. The Treasury announced it will not enforce penalties or fines against U.S. citizens and domestic reporting companies for failing to meet BOI reporting requirements under the current deadlines. Additionally, the Treasury will issue a proposed rulemaking to narrow the scope of the CTA to foreign reporting companies only.
According to the Treasury Department, this decision aims to support American taxpayers and small businesses by reducing regulatory burdens. The CTA, initially designed to combat money laundering by requiring companies to report beneficial ownership information, faced significant opposition due to its perceived intrusiveness and burden on small businesses. The Treasury’s recent action reflects a response to these concerns and ongoing legal challenges.
If you have any questions about the CTA, please do not hesitate to contact your attorney at Bailey Cavalieri.