DOJ Suspends CTA Enforcement for U.S. Businesses
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 Beneficial Ownership Information (BOI) reporting requirements under the existing regulatory deadlines.
The CTA was initially enacted to combat financial crimes such as money laundering and tax evasion by creating a federal database of privately held businesses. However, many small business owners, accountants, and compliance professionals found the law confusing and burdensome. This suspension provides immediate relief for businesses that were struggling to understand and comply with the reporting obligations.
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 Financial Crimes Enforcement Network (FinCEN) are expected to issue further clarifications by March 21, 2025, on how the law will apply to foreign businesses moving forward.
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.”
State-Level BOI Reporting Still Moving Forward
Despite this federal suspension, several states are introducing their own beneficial ownership reporting requirements.
This means that businesses operating in multiple states will still need to monitor and comply with new state-specific BOI filing requirements in addition to ongoing federal compliance obligations.
Federal and State Business Filings Still Required
Even though the CTA enforcement is suspended, U.S. businesses must continue to stay compliant with other federal and state filing requirements, including:
To avoid penalties and maintain good standing, businesses should use compliance solutions that streamline reporting across all 50 states.
FileForms: Simplifying Compliance for Businesses
FileForms 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, FileForms helps you stay compliant with ease.
Stay Updated on BOI Reporting and CTA Compliance
As the situation evolves, business owners should stay informed about ongoing changes to CTA regulations, state BOI reporting laws, and other compliance requirements. Subscribe to FileForms for the latest updates and expert guidance on navigating BOI compliance and business reporting obligations.
