Treasury Department to Halt Enforcement of Corporate Transparency Act Penalties for U.S. Companies

In a significant policy shift, the U.S. Treasury Department has announced that it will not enforce penalties or fines related to the Corporate Transparency Act (CTA)'s beneficial ownership information (BOI) reporting requirements under the current regulatory deadlines. Furthermore, even after forthcoming rule changes take effect, U.S. citizens, domestic reporting companies, and their beneficial owners will remain exempt from penalties or fines associated with these reporting requirements.

In a move aimed at reducing regulatory burdens on American businesses, the Treasury Department also plans to introduce a proposed rulemaking that will limit the scope of the CTA’s BOI reporting requirements to foreign reporting companies only. This adjustment is designed to protect hardworking American taxpayers and small businesses while ensuring the rule serves the public interest without unnecessary red tape.

A Win for Small Businesses

Calling the announcement a “victory for common sense,” U.S. Treasury Secretary Scott Bessent emphasized the administration’s commitment to fostering economic growth by rolling back excessive regulations.

“Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, particularly for small businesses that are the backbone of the American economy,” Bessent stated.

This decision marks a significant policy shift in favor of small businesses and entrepreneurs, signaling a continued effort to streamline regulations and promote economic expansion.