In a press release issued on March 2, 2025, the Treasury Department stated the following:
“The Treasury Department is announcing today 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.”
What Does This Mean for You?
The Treasury’s announcement is good news that comes on the heels of FinCEN’s February 25 announcement to pause enforcement actions and not issue fines or penalties against companies for failing to file or update beneficial ownership information (BOI) reports under previous Corporate Transparency Act reporting deadlines.
This pause gives regulators time to reassess the framework and address compliance burdens faced by small businesses. It also offers an opportunity for further discussion on balancing transparency with business interests.
While the Treasury’s announcement is a welcome step forward, businesses should remain alert. It is anticipated that additional information and clarity will be forthcoming in the weeks and months ahead to address specific reporting requirements and related deadlines.
