On March 2, the U.S. Department of the Treasury announced it will not enforce any penalties or fines associated with beneficial ownership reporting duties under the CTA, and that additionally, it will no longer be enforcing penalties or fines against U.S. citizens or domestic reporting companies even after CTA rule changes are promulgated in the near future.

Instead, the Department will be narrowing the scope of reporting duties to foreign reporting companies only and will look to reduce the regulatory burdens that have impacted American small businesses. This comes after FinCEN released a statement on February 28, 2025, that the agency will not issue fines, penalties, or pursue any other enforcement action against reporting companies for failure to file or update BOI reports under the CTA and the deadlines then imposed by FinCEN, while it waited for further guidance.

As a part of a notice of proposed rulemaking, FinCEN will be seeking public comment on revisions to the CTA reporting requirements later this year, although it remains unclear how ongoing litigation will impact the CTA.