WASHINGTON — The saga surrounding beneficial ownership information (BOI) reporting requirements under the federal Corporate Transparency Act (CTA) took another turn Sunday when the U.S. Treasury Department announced that it will not enforce the rule.
The Department issued a statement 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.”
It went on to say that it will be issuing a proposed rule change 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,” the statement says, “and ensuring that the rule is appropriately tailored to advance the public interest.”
“This is a victory for common sense,” says 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.”
Injunctions and Reversals
The CTA, passed in 2021, requires most companies—including dry cleaners—to file ownership information with the Financial Crimes Enforcement Network (FinCEN). The BOI reports would be mandatory for anyone exercising substantial control or owning at least 25% of a reporting company. The law aims to prevent illicit activities such as money laundering and drug trafficking through shell companies.
Lawsuits by small businesses and small-business advocates have blocked the reporting requirements, which originally had a deadline of Jan. 1, 2025. In the past few months, injunctions in U.S. district and appeals courts have been issued and lifted, pushing back that deadline. Before this development, the BOI reporting deadline had been set for March 21.
The National Federation of Independent Business (NFIB), a small-business association that is a staunch opponent of BOI reporting and has filed suit to block the requirements, supports this latest development.
“NFIB greatly appreciates President Trump’s strong support in this important effort to protect America’s small-business owners from what he correctly labeled an ‘outrageous and invasive’ beneficial ownership information (BOI) reporting requirement,” says NFIB Senior Vice President for Advocacy Adam Temple.
“NFIB will continue to work with Congress to fight for Congressional repeal of the underlying statute and regulations that intrude into the privacy of small businesses and create a vast new government database on Americans.”
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