By: Eric J. Sachtjen, Shareholder
On March 2, 2025, the U.S. Department of the Treasury announced a significant update to its enforcement approach under the Corporate Transparency Act (CTA). Effective immediately, the Treasury will suspend enforcement of penalties and fines related to the Beneficial Ownership Information (BOI) reporting requirements for U.S. citizens and domestic reporting companies. This suspension applies both to existing regulatory deadlines and to future obligations following forthcoming rule changes.
The decision comes as part of an ongoing effort to refine the CTA’s implementation, which mandates certain entities to report beneficial ownership details to the Financial Crimes Enforcement Network (FinCEN). The Treasury’s move is intended to provide relief to domestic businesses and individuals while adjustments to the regulatory framework are finalized. However, this suspension does not extend to foreign entities or their U.S.-based agents, who remain subject to current CTA requirements.
This development follows months of feedback from businesses, legal professionals, and policymakers regarding the complexity and cost of compliance, particularly for small and mid-sized companies. The Treasury has indicated that additional guidance and revised rules will be forthcoming, though no specific timeline was provided in the announcement.
For now, U.S.-based companies and their beneficial owners can pause efforts to meet BOI filing deadlines without fear of penalties. As the Treasury continues to shape the CTA’s future, obligations may shift once new regulations are enacted.
While this informational publication is about legal issues, it is not legal advice. Legal information is not the same as legal advice and is not a sufficient substitute for or replace the advice or representation of a licensed attorney. If you desire an interpretation of any of the legal principles addressed herein, we recommend you consult with a licensed attorney.
Paine Hamblen, P.S. is a full-service law firm, based in Spokane, Washington, and can assist you with choosing the right business structure, complying with applicable laws and regulations, drafting and reviewing contracts, mitigating risks and liabilities, and navigating the complexities of employment and labor laws. For assistance with a particular business challenge you may be facing, call us at 509-455-6000.
Eric J. Sachtjen is a Shareholder at Paine Hamblen, PS whose practice includes in tax compliance, estate planning, and business advisory service
