Treasury says it won’t enforce CTA, BOI rules

The U.S. Treasury Department says it will not enforce the Corporate Transparency Act scheduled to go into effect March 21, 2025.

The Treasury’s decision announced this week means that business owners who do not submit beneficial ownership information (BOI) as required by the CTA will not face penalties or fines. The Treasury said it will propose changes to narrow the scope of the rule to apply only to foreign reporting companies.

Businesses originally were required to file BOI corporate transparency reports in January, but multiple legal suits challenged the CTA’s constitutionality. Those ultimately failed, and the rules are still set to go into effect March 21.

The CTA was passed in 2021 with support from Republicans and Democrats in Congress.

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