On March 2, 2025, the Treasury Department made a significant announcement regarding the Corporate Transparency Act (CTA). In a move that will be welcomed by many, the Treasury Department stated, “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.”

In addition to this enforcement relief, the Treasury Department will be issuing a proposed rule that will significantly narrow the scope of the CTA’s reporting requirements. The new proposal will focus on foreign reporting companies only, thereby exempting U.S. citizens and domestic companies from the stringent reporting obligations initially outlined in the CTA. Per the Treasury Department, this strategic shift was taken in consideration of the needs of American taxpayers and small businesses to ensure the rule is appropriately tailored to advance the public interest.

If you have any questions about your reporting requirements or the CTA, contact Goodell DeVries’s experienced corporate attorneys. We are here to assist you.

Contact Kaitlin Corey at kcorey@gdldlaw.com or Jim O’Brien at jobrien@gdldlaw.com.