On March 2, 2025, in a significant shift, the U.S. Treasury Department announced it will suspend enforcement of the Corporate Transparency Act (CTA) for U.S. citizens, domestic reporting companies, and their beneficial owners. This means businesses will not face penalties or fines for failing to comply with the beneficial ownership reporting requirements—both under current deadlines and once forthcoming rule changes take effect.

Additionally, the Treasury plans to revise the rule so that it applies only to foreign reporting companies, significantly narrowing its scope.

U.S. Treasury Secretary Scott Bessent called the decision “a victory for common sense,” emphasizing that this move aligns with President Trump’s pro-business agenda to cut excessive regulations—particularly for small businesses, the backbone of the American economy.

This policy shift marks a significant win for American entrepreneurs, reducing compliance burdens and allowing businesses to focus on growth rather than red tape. The Treasury is expected to move forward with formal rulemaking changes in the coming months.

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