The U.S. Treasury Department announced on March 2 that it will cease enforcement of the Corporate Transparency Act (CTA) and its associated Beneficial Ownership Information (BOI) reporting requirements.
This decision follows conservative comedian and entrepreneur Terrence K. Williams tagging Elon Musk on X, urging him to take action against the burdensome Beneficial Ownership Information (BOI) rule.
On Saturday, Williams wrote:
“ELON MUSK!!! I’m begging you!
Please ask President Trump to get rid of this ridiculous BOI rule that Biden Created
It’s targeting conservatives and small businesses!
I just received an email saying I must fill out Beneficial Ownership Information Report every year or be fined over 591 dollars a Day + 10k fine and Prison time
They don’t need to collect personal data every year, this is insane.”
Musk responded, “I can look into it.”
I can look into it
— Elon Musk (@elonmusk) March 2, 2025
On Sunday, the Treasury Department announced it is suspending enforcement of the Corporate Transparency Act for U.S. citizens and domestic reporting companies.
According to the press release:
“The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either.
The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only.
Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.
“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent. “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.”
President Donald Trump also expressed his approval of the decision.
Trump wrote on Truth Social:
Exciting news! The Treasury Department has announced that they are suspending all enforcement of the outrageous and invasive Beneficial Ownership Information (BOI) reporting requirement for U.S. Citizens. This Biden rule has been an absolute disaster for Small Businesses Nationwide. Furthermore, Treasury is now finalizing an Emergency Regulation to formally suspend this rule for American businesses. The economic menace of BOI reporting will soon be no more.
This decision comes as a relief to millions of small businesses nationwide that faced intrusive mandates to disclose personal details about their owners to federal authorities.
The Corporate Transparency Act (CTA) is a U.S. federal law enacted as part of the Anti-Money Laundering Act of 2020 to combat financial crimes such as money laundering, tax fraud, and illicit financing.
The law took effect on January 1, 2024, and requires certain companies to disclose their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury Department.
However, the law imposed undue burdens on legitimate small businesses, infringing upon privacy and states’ rights.
Key Provisions of the CTA:
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Beneficial Ownership Reporting
- Businesses must report individuals who own or control at least 25% of the company or exert significant control over it.
- Report includes full name, date of birth, address, and a unique identifying number (e.g., passport or driver’s license).
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Who Must Report?
- Most small and medium-sized businesses formed in the U.S. or registered to do business in the U.S.
- Exceptions include larger companies (with more than 20 full-time employees and over $5 million in revenue) and certain regulated industries (e.g., banks, investment firms).
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Reporting Deadlines:
- Companies formed before Jan. 1, 2024 must file by Jan. 1, 2025.
- New businesses formed in 2024 have 90 days from registration.
- New businesses formed after 2024 have 30 days to report.
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Penalties for Non-Compliance:
- Fines up to $500 per day for failure to report.
- Criminal penalties including fines up to $10,000 and up to 2 years in prison for willfully providing false information
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