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ENFORCEMENT OF THE CORPORATE TRANSPARENCY ACT IS SUSPENDED BY THE U.S. TREASURY DEPARTMENT
On February 27, 2025, the Financial Crimes Enforcement Network (FinCEN) announced that it will not be not be enforcing fines or penalties associated with the beneficial ownership information reporting rule (BOIR) under the existing regulatory deadlines, making compliance voluntary for U.S. companies which previously had a reporting obligation. As discussed in our prior article, FinCEN will be issuing an interim final rule no later than March 21, 2025 to extend BOI reporting deadlines.
Furthermore, The U.S. Department of Treasury announced on March 2, 2025 that it will not be enforcing fines or penalties against domestic reporting companies and beneficial owners who are U.S. citizens even after the new deadlines are announced. The Department of Treasury intends to issue a proposed rule that would narrow the scope of the rule to foreign reporting companies only. U.S. Secretary of the Treasury, Scott Bessent, stated that this action is part of the new administration’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.”
What does this mean for business owners?
Businesses who have not yet filed their BOIR may choose to voluntarily file, or can hold off given that there will not be any adverse enforcement actions taken by the Department of Treasury until a new rule is in place. Ross Brittain & Schonberg Co., LPA will continue to alert you to any decisions that impact BOIR filing requirements. If you have any questions, please contact Kimberly Basta at kbasta@rbslaw.com.