Update March 31, 2025
On March 26, the Treasury Department filed new rules and interim final rule limiting the entities that need to report to foreign entities and exempting domestic corporations and LLCs. That rule is effective March 16, 2025, and the deadline for these foreign entities to report is 30 days from that date. They will also be accepting comments to this interim final rule. Potential changes on those comments could change but we won’t know until all those comments have been accepted. It’s also important to keep in mind high-risk real estate transactions will still need to be reported beginning Dec. 1, 2025.
Update March 3, 2025
The Treasury Department announced Sunday that it will propose rules changes to the Corporate Transparency Act that will better support American small businesses.
According to the announcement, the Department of Treasury will seek new rules for the Corporate Transparency Act that will focus on foreign reporting companies. The statement comes on the heels of last week’s announcement by the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) that it will not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines. The deadlines have been extended from Jan. 1, 2025 to March 21, 2025 due to current challenges in federal district court.
“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent Sunday. “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.”
Keep watching this site for more updates.
Original post – February 28, 2025
The Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has released another important update to the Corporate Transparency Act.
In keeping with its recently stated intention to reduce regulatory burdens on businesses, while at the same time prioritizing reporting for entities that pose the most significant law enforcement and security risks, FinCEN will be delaying enforcement of the Act’s requirements, and proposing new rules and guidelines on or before March 21, 2025. Watch the video above.
Until these forthcoming rules become effective, FinCEN stated that the agency will not issue any fines, penalties, or take enforcement action against a Corporation, LLC or trust, that is currently required under the Act to report beneficial ownership information. FinCEN anticipates that these proposed rules will also include new reporting deadlines. The agency also stated that it will be accepting public comments for consideration after the proposed rules are published.
WHERE WE STAND NOW: The Corporate Transparency Act is still currently in place, and March 21 is still an important date. However, instead of a reporting deadline, March 21 is now the date that new rules, guidelines, and deadlines are expected to be published. According to FinCEN, no enforcement action will occur until those are finalized and effective.
As always, stay tuned for any further news on changes, as things can always change. And if they do, we will keep you updated.
