Update #5: Enforcement Suspended for U.S. Companies
Just when small business owners thought they had a handle on the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA), the landscape has shifted dramatically once again. In a surprising move, the U.S. Department of the Treasury has announced it will not enforce penalties against American companies for failing to disclose ownership information under the CTA.
The Latest Developments
Here’s a breakdown of the recent changes:
March 2, 2025: The Treasury Department declared that it will not enforce any penalties or fines associated with the BOI reporting rule under the existing regulatory deadlines. Furthermore, it will not enforce penalties against U.S. citizens or domestic reporting companies after forthcoming rule changes take effect.
Upcoming Rule Changes: The Treasury plans to issue a proposed rulemaking that will narrow the scope of the BOI reporting rule to foreign reporting companies only. This move aims to reduce the regulatory burden on small businesses and focus on entities that pose significant national security risks.
What This Means for Your Business
If you’ve been navigating the complexities of BOI reporting, here’s what you need to know:
Enforcement Suspension: As of now, U.S. citizens and domestic reporting companies are not required to file BOI reports, and no penalties will be enforced for non-compliance under the current regulatory deadlines.
Future Rulemaking: The Treasury intends to propose a rule that will limit BOI reporting requirements to foreign reporting companies. This means that domestic companies may be exempt from these requirements in the future.
Stay Informed: While enforcement is currently suspended, it’s essential to stay updated on any further changes. The Treasury and FinCEN may issue new guidance or rules that could impact your reporting obligations.
Looking Ahead
Navigating these changes can be challenging. At Protect What You Built, we’re dedicated to keeping you informed and compliant. Visit our website for the latest updates, resources, and personalized assistance to help you through this evolving regulatory landscape.
