In a surprising new development that comes just days after a temporary ban on the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting requirements was lifted, the U.S. Department of the Treasury (Treasury Department), Financial Crimes Enforcement Network (FinCEN) announced in a March 2nd press release that it will not enforce the BOI reporting requirements against U.S. citizens and domestic reporting companies.
The Treasury Department stated that in addition to suspending penalties for failure to file a BOI report by March 21, 2025, “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 also stated that it will be issuing a proposed rulemaking to narrow the scope of the reporting requirements to apply to foreign reporting companies only (i.e., companies formed internationally that are qualified to do business in the U.S.). The Treasury Department did not state whether the proposed rulemaking should be expected before the March 21, 2025 deadline.
While domestic reporting companies will no longer be penalized for failing to file a BOI report, the CTA is still in effect. BOI reports can be filed directly with FinCEN, free of charge, using FinCEN’s E-Filing system. Additional information regarding BOI report filing obligations will be provided as more developments arise.
Should you have any questions regarding the above, please contact the Garfunkel Wild FinCEN Committee at [email protected], the authors, the Garfunkel Wild attorney with whom you regularly work, or contact us at [email protected].