Important Update: Suspension of Corporate Transparency Act Enforcement

We have an update from the Treasury Department regarding the Beneficial Ownership Information (BOI) reporting requirement and the Corporate Transparency Act (CTA).

On March 2, 2025, the Treasury Department announced that it will not enforce penalties and fines related to the beneficial ownership information reporting rule. This applies to both U.S. citizens and domestic reporting companies, as well as their beneficial owners. Furthermore, this decision will remain in effect even after forthcoming rule changes are implemented.

In a move aimed at supporting hardworking American taxpayers and small businesses, the Treasury Department will also issue a proposed rulemaking that will narrow the scope of the CTA to focus solely on foreign reporting companies. U.S. Secretary of the Treasury Scott Bessent emphasized that this action is part of President Trump’s broader agenda to reduce regulatory burdens, particularly for small businesses, which are vital to the American economy.

This announcement represents a pivotal shift in regulatory approach, offering relief to many organizations and individuals who have felt the weight of compliance obligations under the original framework of the CTA.

We believe this change will have a positive impact and reduce unnecessary administrative burdens. As always, the team at Kimbrough Law is here to assist you with any questions or concerns you may have regarding these developments or how they might affect your business.

Thank you for your continued trust in us. We will keep you updated on any further changes from the Treasury Department. If you have any questions, please call Kimbrough Law at 706.850.6910.