March 4, 2025
Contributors: Arvin F. Zora, Charles E. Turnbull

Small business owners can breathe a sigh of relief this week as the U.S. Department of Treasury announced that it would be suspending enforcement of the Corporate Transparency Act (CTA) for U.S. based companies. The news followed after the Treasury Department declared that it would not enforce penalties or fines associated with the Corporate Transparency Act (CTA), which included $500 for each day that a violation continues and imprisonment of up to two years.

The CTA was enacted in 2021 to help combat money laundering and shell company formation. Opponents of the CTA argued that the legislation was overly broad and carried unintended consequences for the vast majority of small businesses. The move this week by the Department of Treasury will eventually narrow the Beneficial Ownership Information (BOI) reporting obligation only to foreign based companies. The announcement is also consistent with the Financial Crimes Enforcement Network’s (FinCEN) decision to prioritize reporting for those entities that pose the most significant national risk and reduce the burden on lower-risk entities.

The attorneys at O’Reilly Rancilio P.C. will continue to monitor matters regarding BOI reporting and the CTA, and are available to counsel clients on reporting and compliance requirements. Please don’t hesitate to contact Charles E. Turnbull at cturnbull@orlaw.com or Arvin F. Zora at azora@orlaw.com if you have any questions.

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