On March 2, 2025, the U.S. Department of the Treasury announced a major shift regarding the enforcement and nature of the Corporate Transparency Act (CTA). This update follows weeks of evolving discussions and provides much-needed clarity for business owners.
Key Takeaways
The Treasury has once again confirmed that penalties and fines related to the CTA will not be imposed on U.S. citizens or domestic reporting companies, even with any changes to the the reporting rule that will be proposed in the coming months. The government released that the new rule would only impact foreign reporting companies, not U.S. businesses or their beneficial owners. While the CTA as it is now technically remains in effect, FinCEN indicated that it would not be enforced, making compliance efforts less urgent—for now.
What This Means for Your Business
For businesses structured as LLCs, corporations, or other entities subject to the CTA’s reporting requirements, this promise of non-enforcement offers relief to millions of businesses.
However, if the courts uphold the CTA’s constitutionality and Congress does not repeal the law, the regulatory landscape may still change. This means that while there is no immediate risk of penalties, business owners should be prepared for future compliance obligations should enforcement resume. Compliance requirements could shift again under a different administration, especially since the legal status of the CTA still stands alive.
Looking Ahead
We are closely monitoring developments to provide timely guidance on how these changes may impact your business. If you have any questions about the CTA or your reporting obligations, please reach out to us for assistance.
For more details, you can read the full Treasury Department press release here.