Corporate Transparency Act Reporting Penalties and Fines Will Not be Enforced

WASHINGTON, D.C. (March 10, 2025) – Penalties and fines associated with the Beneficial Ownership Information (BOI) reporting rule for the Corporate Transparency Act (CTA), under existing deadlines, will not be enforced, per a release from the U.S. Treasury Department. The Treasury Department said it will not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either.

The Treasury Department will be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. The Treasury said it took this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.

The CTA was passed in 2021 to help track illicit money and required businesses to file their BOI with the Financial Crimes Enforcement Network (FinCEN). There had been a number of stops and starts in the courts to the CTA in the last year.