Treasury Announces BOI Reporting Will Not Apply to Citizens and Domestic Reporting Companies

The U.S. Department of the Treasury has made a pivotal announcement regarding the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements. After months of uncertainty surrounding compliance deadlines, the Treasury Department has clarified that it will not impose penalties or fines on U.S. citizens, domestic reporting companies, or their beneficial owners under the existing regulatory timelines.

Regulatory Changes Impacting Domestic Companies

On Sunday, March 2, 2025, the Treasury confirmed its intention to modify BOI reporting requirements, ensuring that domestic businesses are no longer subject to these regulations. The department is now preparing to issue a proposed rulemaking that will formally restrict the BOI reporting rule to foreign reporting companies only.

This decision comes as a relief for small businesses and American taxpayers, who have been concerned about the potential compliance burdens. By narrowing the rule’s scope, the Treasury aims to eliminate unnecessary regulatory hurdles and streamline compliance efforts for domestic entities.

A Win for Small Businesses and U.S. Entrepreneurs

"This is a victory for common sense," stated U.S. Secretary of the Treasury Scott Bessent. The decision aligns with the administration's broader efforts to reduce regulatory burdens, particularly for small businesses that have limited resources to navigate complex compliance requirements.

The Treasury’s move is expected to simplify reporting obligations and provide much-needed clarity for domestic companies that were previously uncertain about their obligations under the Corporate Transparency Act.

What This Means for Businesses That Have Already Filed

As of now, the Treasury has not released any details regarding potential actions for domestic entities that have already submitted BOI reports. It remains unclear whether amendments, retractions, or further clarifications will be necessary. Businesses that have already complied with FinCEN’s reporting requirements should stay informed as the Treasury releases more guidance in the coming months.

Stay Informed and Ensure Compliance

The Treasury’s announcement marks a significant shift in BOI reporting regulations, offering relief to U.S. businesses and individuals. However, with upcoming regulatory changes still in development, it’s crucial for business owners to stay updated on any new compliance requirements.

If you have questions about how these changes may affect your business or need assistance with corporate compliance matters, our team at TPSA CPAs is here to help. Contact our office today to schedule an appointment with one of our expert advisors.