Enforcement of Corporate Transparency Act (CTA) is SUSPENDED

Big news for small businesses: the U.S. Treasury is indefinitely suspending enforcement of the Corporate Transparency Act (the “CTA”). That means, for now, these businesses do not have to report their beneficial ownership information (“BOI”) to the federal government. FinCEN, the agency handling BOI reporting, has also confirmed it will not be issuing fines or penalties for missed deadlines. A new interim rule is expected by March 21, 2025, to provide updated guidance and clarity on what is next.

This decision is part of a larger push to ease regulatory burdens, especially for small businesses. The Treasury Department is now shifting its focus, planning to narrow BOI reporting requirements to foreign-owned companies instead. A proposed rule on this is expected later this year. In the meantime, Congress may look to curtail the CTA, but it is unclear what to expect.

Many business owners are lauding the suspension of enforcement, but anticorruption advocates worry it could make it easier for bad actors to hide illicit activities like money laundering. Regardless, things are (yet again) on hold, so reporting BOI remains voluntary. As things continue to evolve, business owners should keep an eye out for updates from FinCEN and the Treasury Department to stay compliant with any future regulations or changes.