The Treasury Department announced on March 2, 2025 that it will suspend enforcement of the Corporate Transparency Act (CTA) for U.S. citizens and domestic reporting companies.

Notably, the Treasury press release connected the announcement to a White House initiative. “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,” Treasury Secretary Scott Bessent said in the release.

The Treasury statement follows a similar announcement last week from the Financial Crimes Enforcement Network (FinCEN), an arm of the Treasury Department that was designed to enforce the CTA. The Feb. 27 press release said FinCEN will not impose penalties or fines for failures to meet current beneficial ownership information (BOI) reporting deadlines.

FinCEN said it will issue an interim final rule by March 21, 2025, to extend reporting deadlines and seeking public input on potential revisions to BOI reporting requirements.

The FinCEN press release did not differentiate between domestic and foreign reporting companies. The Treasury press release indicated that proposed rulemaking will narrow the scope of the rule to foreign reporting companies only.

What’s Next?

Together, these announcements reveal that the Trump administration is considering a major regulatory rollback aimed at reducing compliance burdens for U.S. small businesses. The details of the rollback may be revealed in FinCEN’s proposed rule. There are also several pending court cases challenging the constitutionality of the CTA.

Many businesses have continued to prepare CTA filings but held off on submission pending the announcement of a true deadline. These latest developments suggest, however, that U.S. companies may wish to forgo any additional preparation efforts because FinCEN has consistently extended the deadline whenever the status of the law’s enforcement changes.

Fox Rothschild's CTA Compliance Team continues to monitor regulatory developments and court challenges to the CTA and will provide relevant updates as they become available. In the meantime, our attorneys are available to assist with your CTA compliance questions. Contact Kevin Granahan, Christopher Pippett, Marilyn Sonnie or any other attorney at Fox Rothschild with whom you maintain a relationship.

This information is intended to inform firm clients and friends about legal developments, including the decisions of courts and administrative bodies. Nothing in this alert should be construed as legal advice or a legal opinion. Readers should not act upon the information contained in this alert without seeking the advice of legal counsel. Views expressed are those of the author(s) and not necessarily this law firm or its clients. Prior results do not guarantee a similar outcome.