After months of back-and-forth regarding the status of the Corporate Transparency Act (“CTA”), the U.S. Department of Treasury has effectively ended the CTA’s reporting obligations for U.S. citizens and domestic reporting companies. On March 2, 2025, the Department of Treasury announced that it will not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, and it will not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners pursuant to the reporting rule.
The Department of Treasury will further be issuing a proposed rulemaking that will narrow the scope of the reporting rule to apply to non-U.S. reporting companies only. This means that domestic U.S. companies and U.S. citizens are no longer required to submit beneficial owner information under the CTA. We will provide further updates regarding the proposed rulemaking when details become available.
