Corporate Transparency Act (CTA) Update
Corporate Transparency Act (CTA) Update
Treasury Narrows Reporting Requirements for Domestic Entities
On March 21, 2025, the U.S. Department of Treasury issued interim regulations that significantly limit the scope of Beneficial Ownership Information (BOI) reporting under the Corporate Transparency Act (CTA). The new rules exempt domestic reporting companies from BOI filing requirements with the Financial Crimes Enforcement Network (FinCEN). These entities are no longer required to submit, update, or correct BOI reports.
Under the updated framework, only foreign reporting companies—those formed under foreign laws and registered to do business in the U.S.—must comply with BOI reporting, unless they qualify for existing exemptions (such as the large operating company exemption).
Key Deadlines for Foreign Reporting Companies:
- Entities registered before March 21, 2025, must submit BOI reports within 30 days of that date.
- Entities registered on or after March 21, 2025, must file reports within 30 calendar days of receiving registration confirmation.
These are interim rules and are subject to change. The Treasury Department has opened the rule for public comment and anticipates further legal review. Additional guidance is expected as developments unfold. Organizations should consult their legal or financial advisors to assess any obligations under the CTA.