Beneficial Ownership Interest (BOI) Reporting

The Corporate Transparency Act has been an ongoing saga since it was passed in 2021. The idea behind the CTA was to have business owners report to the federal government on the businesses they owned to try to prevent money laundering. It was difficult to follow, though, and a raft of lawsuits followed. It was blocked by the Courts, then unblocked, then blocked again. People were told to comply starting January 1, 2024, but then told that they did not have to. Finally, the cases have been resolved, and the CTA is in effect.

Anyone who owns at least a 1/3 interest in a business is supposed to report their ownership interest through a beneficial ownership interest form to the US Treasury Department’s Financial Crimes Enforcement Network. The penalties under the Corporate Transparency Act for not filing this report are steep.

On March 2, 2025, the U.S. Treasury Department put out a press release on the BOI reporting. The Treasury Department indicates that it will not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their owners. The rule will still be enforced against foreign reporting companies only.

What does it mean?

For US companies and US citizens, right now, the Treasury Department won’t be enforcing fines or penalties. That announcement may be relied on for now, but it is not law. The Treasury Department can change its mind about narrowing the law and begin to enforce fines if it decides to do so. It’s also complicated for people who own businesses across the border, who may still have to comply or be heavily fined.

If you are a business owner, reach out to a skilled business law attorney at Townsend Allala, Coulter & Kludt, PLLC. Contact us online or give us a call at 915-533-0007 to find out if you need to comply.

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