Update to Corporate Transparency Act BOI Reporting Rules

Tax News You Can Use | For Professional Advisors

Jane G. Ditelberg

Director of Tax Planning, The Northern Trust Institute

The CTA BOI reporting rules are to be narrowed, and enforcement against domestic entities and U.S. citizens has been suspended

Over the past three months, there has been a rollercoaster of activity regarding the Corporate Transparency Act (CTA) and the due date for beneficial ownership information (BOI) reporting. In February, government agency, FinCen, announced that no penalties or fines would be issued to anyone for failure to file before March 21, 2025. In a press release dated March 2, 2025, Treasury announced it was suspending enforcement of the BOI reporting requirements for U.S. citizens, domestic reporting entities and their beneficial owners. No penalties or fines will be imposed on these entities until new rules take effect. In addition, the press release stated that Treasury will narrow the application of the BOI reporting rules to provide that only certain foreign entities registered to do business in the U.S. will be subject to BOI reporting requirements.

At the moment, foreign entities should prepare to file by March 21, 2025. Domestic entities can defer filing anything until new regulations become effective, and with the expectation that their BOI reporting obligations may be removed permanently by new regulations.

For more information, see Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies | U.S. Department of the Treasury

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Disclosures

This information is not intended to be and should not be treated as legal, investment, accounting or tax advice and is for informational purposes only. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal, accounting or tax advice from their own counsel. All information discussed herein is current only as of the date appearing in this material and is subject to change at any time without notice.

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