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Treasury Department Suspends Enforcement of Corporate Transparency Act Against Domestic Citizens and Reporting Companies

Mar 11, 2025 | Tyrice J. Denson

The Treasury Department has announced that U.S. citizens and domestic reporting companies will not face penalties for failing to comply with Corporate Transparency Act (CTA) reporting requirements — at least for now. This decision follows months of uncertainty for small business owners navigating ongoing litigation and deadline changes.

Key Updates on the Corporate Transparency Act

There are two significant developments regarding the CTA’s reporting requirements:

  1. FinCen's Suspension of Penalties: The Financial Crimes Enforcement Network (FinCen) has confirmed it will not impose penalties or fines until an upcoming interim final rule takes effect and its new deadlines have passed [1].
  2. Treasury’s Suspension of Domestic Enforcement: The Treasury Department announced it will not enforce penalties or fines against U.S. citizens or domestic reporting companies after the forthcoming rule changes take effect[2].

Additionally, the Treasury Department has proposed narrowing the CTA’s scope to focus primarily on foreign reporting companies, reducing compliance concerns for most U.S.-based businesses[3].

What About the March 21, 2025 Deadline?

Technically, the March 21, 2025, deadline for businesses to submit a Beneficial Owner Information Report (BOIR) to FinCen remains in place. However, U.S. citizens and domestic reporting companies will not face fines or penalties even after new rules are finalized and additional deadlines are set.

What Should Businesses Do Now?

While the risk of immediate penalties is now reduced, small business owners should still take proactive steps:

  • Stay informed about updates from the Treasury Department and FinCen.
  • Maintain accurate ownership records in case reporting obligations resume.
  • Consult with a business attorney to ensure you're prepared for future changes.

Conclusion

The recent announcements provide clarity for U.S. business owners who have faced uncertainty about CTA reporting requirements. While the immediate pressure to meet the March 21 deadline has eased, businesses should remain diligent and informed.

If you have questions about the CTA or how these updates affect your business, contact a DeWitt Business Attorney today.