Corporate Transparency Act – US Treasury Department Publishes Important Announcement

On March 2, 2025, the US Treasury Department published the following announcement:

• The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further 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 further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only.  Treasury takes 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.

https://home.treasury.gov/news/press-releases/sb0038

The reporting deadline of March 21, 2025, however, remains in place (see https://fincen.gov/sites/default/files/shared/FinCEN-BOI-Notice-Deadline-Extension-508FINAL.pdf).  The US Treasury Department is just announcing that it will not enforce penalties for not timely filing against U.S. citizens and domestic reporting companies.  The announcement does not apply to resident aliens, non-resident aliens, and foreign reporting companies.  While this relief from penalties and fines does not apply to these foreign persons and companies, Treasury will be issuing further proposed rules that will narrow the scope of the CTA for foreign reporting companies.