Treasury Ends BOI Enforcement

Kort Redick

U.S. Treasury Department Halts Enforcement of Corporate Transparency Act (CTA) and Beneficial Ownership Information (BOI) Reporting

On March 2, the U.S. Treasury Department announced that it will no longer enforce the Corporate Transparency Act (CTA) or its associated Beneficial Ownership Information (BOI) reporting requirements. This decision effectively halts a Biden-era regulation intended to combat money laundering and the creation of shell companies.

In a press release, Treasury Secretary Scott Bessent described the move as “a victory for common sense,” aligning it with “President Trump’s bold agenda to unleash American prosperity by reducing burdensome regulations, particularly for small businesses, which are the backbone of the U.S. economy.”

The Treasury Department also confirmed that it will not impose penalties for non-compliance with BOI reporting requirements, whether under existing regulatory deadlines or after upcoming rule changes. Additionally, the agency plans to issue a proposed rule that will narrow the scope of the regulations, applying only to foreign reporting companies.

President Trump criticized the CTA on his Truth Social platform, calling it “outrageous and invasive” and asserting that “the economic menace of BOI reporting will soon be no more.” Many business leaders, along with professionals in the accounting community, have opposed the requirements, citing privacy and security concerns related to the database and arguing that the information it sought was already collected by other government agencies.

The implementation of BOI reporting has been paused and resumed multiple times, leaving tax and accounting professionals—and their clients—in a state of uncertainty. While this change is presented with more finality than previous delays, we will continue to monitor the situation and keep you updated on further developments.