The U.S. Treasury Department announced on March 2, 2025, that it is suspending enforcement of penalties and fines associated with the Corporate Transparency Act (CTA) for U.S. citizens and domestic reporting companies.
Key Points:
- The Treasury will not enforce penalties related to beneficial ownership information reporting requirements for domestic entities under existing regulatory deadlines
- The Department will propose new rulemaking to narrow the scope of the rule to focus only on foreign reporting companies
- Secretary Scott Bessent characterized this move as "a victory for common sense" and part of President Trump's agenda to reduce regulatory burdens on small businesses
This policy change aims to support American taxpayers and small businesses while maintaining appropriate oversight of foreign entities. The Treasury Department stated this step is being taken "in the interest of supporting hard-working American taxpayers and small businesses."
We will continue to monitor developments regarding the Corporate Transparency Act and will provide updates as the new rulemaking process unfolds.
Please contact us if you have any questions about how this regulatory change may affect your business.