On March 2, 2025, the U.S. Treasury Department announced it will no longer enforce the Corporate Transparency Act (CTA) beneficial ownership information (BOI) reporting requirements—or their penalties—against domestic entities. For background on the CTA’s history, please see our prior updates.
For U.S. formed businesses, this suspension effectively halts the CTA’s mandates, including the March 21, 2025, filing deadline. Foreign entities registered to do business in the U.S., however, remain subject to the law. FinCEN is now redirecting its enforcement focus to these entities. Additionally, the Treasury Department announced that it plans to issue a proposed rule that would limit the CTA to foreign entities. It is important to note that no formal rule change has been enacted. Expect a formal rule change before the prior March 21, 2025, deadline.
Frier Levitt will continue to monitor the fate of the CTA and provide updates as they become available.
Co-Managing Partner
