Oh BOI! Treasury Grants Welcomed Relief From CTA Reporting

As readers of this blog are aware, the Corporate Transparency Act (CTA) obligates small business entities to disclose to the Financial Crimes Enforcement Network (FinCEN) who really owns them. This beneficial ownership information (BOI) included names, addresses, photo IDs (drivers license, state ID, passport) for owners or key officers.

Domestic companies (formed under US state law) faced a deadline of March 21, 2025, to report their BOI to FinCen if they were created before 2025. Entities created after 2024 had 90 days after their formation to report their BOI. Businesses faced heavy fines or even jail time for non-compliance. Foreign companies faced similar rules.

On March 2, 2025, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) dropped a bombshell: it will no longer require domestic companies or U.S. citizens to report their BOI under the Corporate Transparency Act (CTA). Instead, FinCEN plans to focus solely on foreign reporting companies. This shift in focus aims to lighten the load on American businesses. So, what does this mean for domestic companies? Let’s break it down.

Most importantly, this slashes red tape and saves time and money for small businesses subject to the CTA. However, FinCEN isn’t scrapping the CTA entirely. Foreign reporting companies still must comply. If you’re a U.S. firm with foreign ties, double-check your status. A “foreign reporting company” means an entity formed under another country’s laws and registered to operate in the U.S. Those folks still face the BOI grind. Treasury’s move aims to target risks like money laundering from overseas while sparing American firms the hassle.

For domestic companies, this is a huge win. You’re off the hook for now—no fines, no deadlines, no federal database tracking your ownership. Treasury plans to tweak the rules further via proposed rulemaking, so stay alert for updates. Critics might worry this opens loopholes for shady actors to use U.S. proxies, but for most law-abiding businesses, it’s a sigh of relief.

In short, domestic companies can kick BOI reporting to the curb. Focus on running your business, not feeding FinCEN’s database—unless you’re foreign, then the old rules remain.

Questions linger about enforcement and future twists, so consulting a lawyer isn’t a bad idea if you’re unsure.