Treasury Declares Halt on BOI Fines and Penalties for U.S. Citizens and Businesses

"Treasury Pauses BOI Fines for U.S. Citizens and Businesses"

U.S. Treasury announced no penalties for failing to file beneficial ownership information reports after new deadlines, focusing enforcement on foreign companies only.

Emily Johnson3 hours agoLast Update : 3 hours ago

Treasury says it won’t enforce BOI fines or penalties against U.S. citizens, businesses

www.journalofaccountancy.com

The U.S. Department of the Treasury announced on March 3, 2025, that it will not impose fines or penalties on U.S. citizens and businesses for failing to file beneficial ownership information (BOI) reports after new deadlines are established. This decision follows a statement from the Financial Crimes Enforcement Network (FinCEN), which indicated that new reporting deadlines would be announced by March 21.

6 Key Takeaways

U.S. citizens exempt from BOI penalties
New BOI reporting deadlines by March 21
Treasury narrows rule to foreign companies
Corporate Transparency Act established BOI requirements
AICPA advocates for reporting deadline delay
Willful violations carry significant penalties

Treasury confirmed that it will not enforce any penalties against domestic reporting companies or their beneficial owners once the forthcoming rule changes take effect, focusing enforcement only on foreign reporting companies.

Fast Answer: The U.S. Treasury will not penalize citizens or businesses for missing beneficial ownership information (BOI) filing deadlines after new dates are set. FinCEN is expected to announce these deadlines by March 21, while rules will shift focus to foreign entities.

The Corporate Transparency Act (CTA), enacted in 2021 as part of anti-money-laundering efforts, requires companies to disclose details about their beneficial owners. Originally, BOI reports were due by early 2025; however, multiple delays have occurred due to legal challenges and requests from various stakeholders for more time. FinCEN had previously moved the deadline to January 13 but later pushed it back again amid ongoing discussions regarding compliance burdens on small businesses.

Estimates suggest that approximately 32 million small businesses could be affected by these reporting requirements. Willful violations of the CTA could result in significant penalties, including fines of up to $10,000 and potential imprisonment for unauthorized disclosures.

Treasury Secretary Scott Bessent described this decision as a victory for common sense and part of an agenda aimed at reducing regulatory burdens on small businesses. Advocacy groups like the AICPA have actively lobbied for extensions and modifications to these requirements, reflecting concerns over compliance costs and operational impacts on smaller firms.

Notice: Canadian readers should note that similar regulations regarding business transparency may apply in Canada under different legislative frameworks. It’s advisable to stay informed about local laws governing corporate disclosure.

This announcement from the U.S. Treasury marks a significant shift in how beneficial ownership reporting will be enforced moving forward, particularly easing pressures on domestic entities while refocusing regulatory attention on foreign companies.