Treasury Department suspends enforcement of Corporate Transparency Act against U.S. citizens and domestic reporting companies
by Pinedale Online!
March 3, 2025
On March 2, 2025, Treasury announced that U.S. citizens and businesses will not be subject to fines or penalties for failing to file beneficial ownership information (BOI) reports after new reporting deadlines are set. This follows an announcement by Financial Crimes Enforcement Network (FinCEN) that it would announce new BOI reporting deadlines no later than March 21, 2025 to extend the current March 21 BOI reporting deadline.
Reports were originally due by the start of 2025. However, Financial Crimes Enforcement Network (FinCEN) pushed that date to January 13, 2025. A subsequent court injunction nullified this deadline. FinCEN later said it would announce new BOI reporting deadlines no later than March 21, 2025. Willful violations had been punishable by a fine of $606 a day, up to $10,000, and two years in prison with similarly serious penalties for unauthorized disclosure.
The lawsuits and rulings have created great confusion and uncertainty for small businesses trying to understand what they need to do regarding complying with the Department of Treasury’s regulations.
Below is the text of the press release posted on the Department of Treasury website:
"The Treasury Department is announcing today (Sunday, March 2, 2025) that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest."
"This is a victory for common sense," said U.S. Secretary of the Treasury Scott Bessent. "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."
Source: Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies U.S. Department of the Treasury, March 2, 2025
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