Treasury Department Suspends CTA Enforcement of BOI

After a series of twists, turns, and legal challenges, the U.S. Department of the Treasury has made significant adjustments to the Corporate Transparency Act (CTA). Initially created to combat money laundering and tax evasion, the CTA required businesses to report their beneficial ownership information to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).

A Shift in Enforcement:

On March 2, 2025, the Treasury Department announced that it would not enforce penalties or fines related to the CTA’s reporting requirements. In fact, no penalties will be levied against U.S. citizens or domestic companies under the current deadlines. Moving forward, the Treasury will propose a new rule that limits the CTA’s application to foreign reporting companies, unburdening small U.S. businesses.

What Does This Mean for Businesses?

This announcement comes as a huge relief to small businesses and U.S. citizens, who had been facing complicated and burdensome reporting requirements. The suspension of penalties, along with the narrowing of the rule’s scope, signals a more balanced approach. Secretary of the Treasury Scott Bessent referred to the decision as “a victory for common sense,” underscoring the need to support American taxpayers and small businesses.

What’s Next?

While the Treasury’s changes are a welcome step forward, businesses should remain alert. New rules are still in the pipeline, and there will be more updates as the proposal moves forward.