Corporate Transparency Act

On March 2, The U.S. Treasury Department has announced a significant shift in the enforcement of the Corporate Transparency Act (CTA). Under the new policy, The U.S. Treasury Department will no longer enforce penalties or fines related to the beneficial ownership information (BOI) reporting rule under the existing regulatory deadlines. Furthermore, even after forthcoming rule changes take effect, U.S. citizens, domestic reporting companies, and their beneficial owners will not face enforcement actions for BOI noncompliance.

This comes after a recent series of news alerts:

• February 18, 2025: BOI reporting requirements back in effect due to a decision by the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336 (E.D. Tex.).
• February 27, 2025: FinCEN announced that it will not issue any fines or penalties or take any enforcement actions against any companies based on any failure to file BOI reports. FinCEN would be issuing a final rule that extends BOI reporting deadlines no later than March 21, 2025.

In a major policy shift, The U.S. Treasury Department will be issuing a proposed rulemaking that narrows the scope of the BOI reporting requirement to foreign reporting companies only. This move is aimed at reducing regulatory burdens on small businesses.

“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent.

These developments demonstrate a notable shift in the U.S. Treasury Department’s approach, evolving from strict enforcement to a more lenient stance that prioritizes regulatory relief. We will continue to monitor developments and provide updates as necessary.

For any additional questions about the CTA, please contact the qualified attorneys at Rock Fusco & Connelly, LLC.