In this “topsy-turvy” arena of the Corporate Transparency Act (CTA) and its enforcement, including Beneficial Ownership Interest (BOI) reporting, on Sunday evening March 2nd, the Department of Treasury issued the following announcement –
“The Treasury Department is announcing today [March 2, 2025] 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.”
On February 27th, FinCEN, an agency within the Treasury Department, reported that it will be issuing a new interim final rule by March 21, 2025. Given the “on-again, off-again” status of BOI reporting and the Treasury Department’s March 2nd announcement, Devine Millimet recommends to its US company clients that they take no further action and await more definitive guidance from FinCEN/Treasury, or intervention by Congress or the courts.
Visit FinCEN’s website: https://fincen.gov/boi for their latest BOI Alerts, updates, and resources, or contact your attorney at Devine Millimet for questions regarding BOI reporting requirements.
