CTA Update: Reporting Requirements Paused for U.S. Businesses
The Corporate Transparency Act (CTA) requires businesses to disclose beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). However, recent legal challenges have led to a major shift in enforcement.
On March 2, 2025, the Treasury Department confirmed it will not impose penalties or fines for failing to meet BOI reporting deadlines. Once upcoming rule changes take effect, U.S. citizens, domestic reporting companies, and their beneficial owners will not face enforcement actions for prior noncompliance. Additionally, the agency plans to narrow the CTA’s scope, limiting reporting requirements primarily to foreign entities.
For businesses that have already filed BOI reports, continuing obligations to update filings will likely end once an interim final rule is issued before March 21, 2025. While BOI reporting is currently voluntary, businesses may still file to ensure compliance in case the rule is reinforced later.
For now, domestic companies can take a wait-and-see approach. However, staying informed is crucial as future regulatory changes could impact compliance obligations. Businesses should monitor updates from FinCEN and the Treasury to stay ahead of any shifts in requirements, or contact your ShindelRock team with questions on how these changes might affect you and your business.