Treasury Department Halts Enforcement of the Corporate Transparency Act Penalties for U.S. Individuals and Domestic Reporting Companies

On March 2, 2025, the U.S. Treasury Department announced that it would not enforce penalties or fines against U.S. citizens, domestic reporting companies, or their beneficial owners for failing to file Beneficial Ownership Information (BOI) reports as required by the Corporate Transparency Act (CTA). Instead, the Treasury Department said it will focus on foreign companies with further details to be provided in a forthcoming rule.

The CTA has been the source of compliance whiplash for reporting companies and their beneficial owners recently, as some courts have handed down injunctions halting enforceability and other courts have upheld the reporting requirements. The Treasury Department’s announcement alleviates this uncertainty and confusion with a clear statement of non-enforcement for U.S citizens and domestic reporting companies.

If you have any questions, please reach out to Robert Garner or a member of our Corporate group.