Corporate Transparency Act: Treasury Department Will Not Enforce the Act Against U.S. Citizens and Domestic Reporting Companies
March 4, 2025
CORPORATE TRANSPARENCY ACT:
TREASURY DEPARTMENT WILL NOT ENFORCE THE ACT AGAINST U.S. CITIZENS AND DOMESTIC REPORTING COMPANIES
On March 2, 2025, the United States Department of the Treasury issued a press release stating that it will not enforce any penalties or fines against U.S. citizens or domestic reporting companies, and will issue proposed rules to narrow the Act’s applicability to foreign reporting companies only. The release provides in pertinent part:
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.
FinCEN has not issued any updated guidance as of this date.
Please reach out to us if you have a question about the Act.