Treasury Department suspends enfocement of Corporate Transparency Act

March 5, 2025

This week, the U.S. Department of the Treasury anonunced the suspension of all enforcement of the Corporate Tramsparency Act (CTA) against U.S. citizens and domestic reporting companies.

The announcement came as part of a multi-step plan put forth by the agency.

First, the Treasury announced that, in addition to not enforcing the CTA against U.S. citizens and domestic reporting companies as set forth in the existing regulatory rules, it will also not enforce any penalties or fines levied against U.S. citizens or domestic reporting companies or any of their beneficial owners after the forthcoming rules changes take effect.

Second, the Treasury Department plans to put forth proposed new rules that will limit the scope of the CTA to apply to foreign reporting companies only.

In a statement announcing the shift, U.S. Secretary of the Treasury Scott Bessent called the changes "a victory for common sense."

Since being signed into law in 2024, the CTA has faced numerous legal challenges questioning the constitutionality of a business formed at the state level being mandated to provide data on its beneficial owners to the federal government.

Click here to read the full statement by the Treasury Department.

To review Gross Shuman attorney Carolyn DeVaughn's ongoing coverage and analysis of the CTA, click any of the links below. 

The Corporate Transparency Act: What You Need to Know (October 15, 2024)

Federal Court Issues Temporary Injunction Blocking Enforcement of Corporate Transparency Act (Dec. 5, 2024)

Financial Crimes Enforcement Network (FinCEN) Issues Clarification on Status of Corporate Transparency Act (Dec. 12, 2024) 

Federal Appeals Court Rules Enforcement of the Corporate Transparency Act Can Continue (Dec. 24, 2024)

Fifth Circuit Reverses Course on Corporate Transparency Act (Dec. 30, 2024) 

Filing Requirements Set Forth in Corporate Transparency Act Back in Effect (Feb. 20, 2025)