On March 2, 2025 the U.S. Treasury Department announced that it has officially suspended enforcement of the Corporate Transparency Act (CTA) for U.S. citizens and domestic businesses. This decision means that no penalties or fines will be imposed on U.S. business owners for noncompliance with BOI reporting requirements under the existing regulatory deadlines.

Here’s the bullet points (longer version below):

• Financial penalties will not be enforced on domestic reporting companies or U.S. citizens for noncompliance with BOI Reporting
• BOI Reporting is back to “voluntary” – FinCEN is still accepting BOI Reports, but penalties will not be enforced.
• Businesses owned by foreign entities or non-U.S. citizens still have to comply with current CTA requirements.
• Certain states have their own BOI reporting requirements that are outside of the federal CTA legislation..
• We will continue to process BOI Reports for those business owners wanting to file their BOI Report.
• Over the next few weeks, we expect to see additional changes as the never ending CTA rollercoaster situation develops.
• BOI Reporting is only one part of a business’s overall compliance requirements…CTA Integrity can assist with maintaining Total Compliance for small businesses and streamlining operations for its partners.

Official Treasury Department Statement

“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.”

U.S. Treasury Secretary Scott Bessent:

“This is a victory for common sense. Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”

CTA Still Applies to Foreign Businesses

While the suspension applies to U.S. businesses and citizens, foreign companies operating in the U.S. are still required to comply with the CTA’s BOI reporting requirements. The Department of Justice (DOJ) and the Financial Crimes Enforcement Network (FinCEN) are expected to issue further clarifications by March 21, 2025, regarding how the law will be enforced for foreign businesses moving forward.

State-Level BOI Reporting Still Moving Forward

Despite the federal suspension, several states are introducing their own beneficial ownership reporting requirements:

• New York has enacted BOI reporting for limited liability companies (LLCs), which will take effect on January 1, 2026.
• California, Massachusetts, and Maryland are currently drafting similar regulations.
• Washington, D.C., has already passed legislation requiring state-level BOI compliance.

Businesses operating across multiple states should remain vigilant about complying with these emerging state-specific BOI filing requirements in addition to federal obligations.

Federal and State Business Filings Still Required

Although CTA enforcement is suspended, businesses must continue adhering to other federal and state filing requirements, including:

• Annual Report Filings (varies by state) with a listed Registered Agent
• Franchise Tax Payments
• State-Level BOI Reporting (as states implement new rules)

Maintaining compliance with these requirements is essential to avoid penalties and preserve good standing.

CTA Integrity: Simplifying Compliance for Businesses

CTA Integrity provides a comprehensive solution for business owners and professionals managing federal and state compliance requirements. Whether you need assistance with BOI reporting, LLC and corporation formations, annual report filings, or franchise tax payments, CTA Integrity helps ensure seamless compliance.

Stay Updated on BOI Reporting and CTA Compliance

As regulatory changes continue to evolve, business owners should stay informed about CTA updates, state BOI reporting laws, and other compliance obligations. Subscribe to CTA Integrity for the latest updates and expert guidance on business compliance and reporting requirements.

FREE Risk Assessment

Sometimes you don’t know what you don’t know.  At CTA Integrity, we’ve developed a free tool to provide some insight on potential compliance or regulatory risk your business can face.  Taking 5 minutes to complete this can potentially save your business tens of thousands of dollars in potential fines and lost time in fixing compliance issues.  Simply click the link below to access our Risk Assessment:

See if My Business is at Risk