Important Legal Update: Treasury Department Halts Enforcement of BOI Reporting
CORPORATE TRANSPARENCY ACT
As the latest development in the saga surrounding beneficial ownership information (“BOI”) reporting, on March 2, 2025, the U.S. Department of the Treasury announced that it will suspend enforcement of the Corporate Transparency Act (“CTA”) for U.S. citizens and domestic reporting companies. The Treasury Department further stated that it plans to narrow the scope of the BOI Reporting Rule to apply to foreign reporting companies only.
Even though the Treasury Department will not enforce any penalties or fines associated with the reporting deadline, FinCEN is still accepting BOI reports on their website under their previously announced deadline of March 21, 2025. This latest update significantly reduces the risk of noncompliance with the CTA. Nonetheless, the CTA remains in flux, and responsible business owners should monitor future developments. Sign up to our blog posts and email notifications to stay updated.
If you have concerns about your entity’s compliance or any other questions about BOI reporting requirements, you should seek the advice of counsel.
About the Authors
J. Thomas O'Brien, Jr. is a corporate and business attorney with nearly 40 years of experience advising business owners, executives and companies on critical legal matters throughout the business lifecycle.
Edward B. Lumpkin works with a broad range of for-profit and non-profit organizations, from start-up ventures to public companies, on a wide variety of matters, with an emphasis on mergers and acquisitions, joint ventures, franchising and licensing arrangements and general corporate, regulatory and securities matters.
Spotts Fain publications are provided as an educational service and are not meant to be and should not be construed as legal advice. Readers with particular needs on specific issues should retain the services of competent counsel.