The Corporate Transparency Act (CTA), which introduced Beneficial Ownership Information (BOI) reporting requirements, has hit a major roadblock. As of March 2, 2025, the U.S. Department of the Treasury announced a suspension of enforcement actions related to BOI reporting for U.S. citizens and domestic reporting companies. This means that businesses will not face penalties or fines for failing to meet the previously established BOI reporting deadlines. However, companies should remain vigilant as regulatory changes are still in motion.

What This Means for Businesses

• No Immediate Penalties: The Treasury Department and FinCEN have confirmed that they will not enforce BOI reporting requirements for U.S. entities at this time.

• Rulemaking in Progress: The Treasury has indicated that it plans to issue new proposed rules to narrow the scope of BOI reporting, primarily focusing on foreign reporting companies rather than domestic entities.

• Potential Revisions Ahead: FinCEN has announced that they will be soliciting public comments on possible modifications to the BOI reporting framework to reduce the burden on small businesses while maintaining national security objectives.

Key Takeaways for Businesses

1. BOI Reporting Deadlines Are No Longer Binding – Businesses that were preparing to submit their reports by the 2025 deadline can temporarily hold off until further guidance is issued.

2. Compliance Obligations May Change – The anticipated regulatory revisions could significantly alter who must report, what information is required, and the filing timelines.

3. Stay Informed – Companies should monitor updates from FinCEN and the Treasury Department to understand how upcoming changes may affect them.

Next Steps

While enforcement is on hold, businesses should still be proactive:

• Monitor Treasury and FinCEN Updates: Any regulatory changes could impact future compliance requirements.

• Participate in Public Comment Periods: The upcoming rulemaking process will allow businesses to provide feedback and potentially influence the final regulations.

• Assess Internal Compliance Procedures: While enforcement is paused, businesses should still document ownership structures and be prepared for any future reporting requirements.

How Oakhaven Advisors Can Help

Oakhaven Advisors is closely tracking these developments and will provide timely updates as new regulations are proposed. If you have questions about how this suspension affects your business or need guidance on potential future compliance, contact us for expert insights.