Treasury Department Drops Most Enforcement of Corporate Transparency Act

The Department of the Treasury announced that it will no longer enforce against several types of violations of the Corporate Transparency Act.

Penalties and finds will no longer be levied in regard to violations of the beneficial ownership information reporting rule. It will also not levy penalties or fines ataing domestic companies, their beneficial owners, or USA citizens. The Department will issue new rules to narrow the scope of enforcement to only foreign companies.

The Treasury Department notice of this change follows: 

The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.

“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent.  “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”