Treasury Announces BOI Reporting Will Not Apply to Citizens and Domestic Reporting Companies
Article Highlights:
- Treasury Announces BOI Reporting Will Not Apply to Domestic Companies
- Rules Making to be Released Will Apply to Foreign Companies Only
On Sunday, March 2, 2025, the Treasury Department made a significant announcement regarding the Corporate Transparency Act. After months of fluctuating deadlines for companies to report their beneficial ownership to FinCEN, the department declared that it will not enforce any penalties or fines linked to the beneficial ownership information reporting rule under the existing regulatory timelines. Moreover, there will be no penalties or fines imposed on U.S. citizens, domestic reporting companies, or their beneficial owners following the upcoming rule changes.
The Treasury Department also revealed plans to issue a proposed rulemaking that will limit the rule's scope to foreign reporting companies exclusively. This move is intended to support hard-working American taxpayers and small businesses by ensuring the rule is finely tuned to serve the public interest.
“This is a victory for common sense,” stated U.S. Secretary of the Treasury Scott Bessent. This action aligns with the administration's agenda to curtail overly burdensome regulations, especially for small businesses.
In summary, BOI reporting requirements will not be applicable to U.S. domestic companies. Currently, no details are available regarding any necessary actions for domestic entities that have already submitted filings. We will keep you updated as new information becomes available.
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