Treasury Suspends Corporate Transparency Act (CTA) Reporting for U.S. Companies

Tax, Audit, Firm and Regulatory News

Posted on March 18, 2025

On March 2, 2025, the Treasury Department announced it would not enforce penalties or fines for failing to meet the March 21, 2025, beneficial ownership information (BOI) filing deadline under the Corporate Transparency Act (CTA).

This effectively means that domestic reporting companies, their beneficial owners, and U.S. citizens are no longer at risk of penalties for noncompliance – at least for now.

What changed?

Originally, the CTA required many businesses to report their BOI to the Financial Crimes Enforcement Network (FinCEN) to help prevent money laundering and other financial crimes. However, the Treasury has now announced that it is working on a rule change that would limit the CTA’s filing requirements to foreign reporting companies only—not domestic businesses.

What are foreign reporting companies?

Under the CTA, these are entities formed under foreign law that have registered to do business in the U.S. by filing with a secretary of state or a similar government office.

What this means for domestic businesses

While the Treasury’s decision doesn’t technically suspend the CTA itself, it does mean that, in practice, most U.S. businesses will not need to worry about compliance for the foreseeable future. However, this rule change has not been finalized, and there’s a slight possibility – though unclear – that Congress or the courts could challenge it.

The CTA has faced extensive legal battles

This decision follows ongoing legal battles over the CTA, including a February 17, 2025, ruling in Smith v. U.S. Department of the Treasury, which lifted the last nationwide injunction on enforcement. While the Supreme Court had previously weighed in on related cases, challenges to the law continue to work their way through the courts.

Given the extensive legal challenges the CTA has faced, it’s uncertain whether anyone will contest the Treasury’s recent decision.

What Happens Next?

Here are a few key things to keep in mind:

No penalties will be enforced against domestic companies or U.S. citizens for missing the March 21, 2025, BOI filing deadline.
The Treasury is proposing a rule to exclude domestic companies from BOI requirements, though it’s not yet finalized.
The decision could face additional challenges, but there’s no clear indication that it will.
Businesses that have already filed reports aren’t required to update them, and the Treasury hasn’t said what will happen to previously submitted data.

What Should Businesses Do?

For now, domestic businesses can pause their CTA compliance efforts. However, because the legal and regulatory landscape is still evolving, it’s crucial to stay informed.

If you have any questions about how these changes impact your business, our team is here to help. Reach out to our office for the latest updates and guidance.

Newly married this year? The tax changes couples miss

Jun 30, 2026

Getting married triggers significant tax changes that catch many couples off guard, from a new filing status that takes effect the moment you say “I do,” to withholding gaps that can result in an unexpected tax bill in April. Beyond filing and withholding, newlyweds also need to address name and address updates, healthcare coverage decisions, HSA eligibility changes, and dependent-related credits before year-end. Tackling these adjustments proactively, rather than waiting until tax season, helps couples avoid penalties, protect their refunds, and start their financial life together on solid footing.

The Kwong Decision and Refund Opportunities

Jun 23, 2026

The Kwong decision may have opened a window — but it’s closing fast. In this conversation, William Hendrick breaks down what the case means for taxpayers who paid penalties and interest during the COVID federal disaster period, who should be looking at their records right now, and what practitioners need to know before the July 10, 2026 deadline.

Retirement readiness in any economy: how to know when you’re truly prepared

Jun 2, 2026

There’s no perfect time to retire, but with the right planning, you can feel prepared in any economy. Learn how to evaluate your readiness, manage timing risks, and build a retirement plan that lasts.