NEWSLETTERS

Important Update: BOI Reporting Requirements Potentially Paused for U.S. Entities

March 4, 2025

We want to provide you with an important update regarding the Corporate Transparency Act (CTA) and the Beneficial Ownership Information (BOI) reporting requirements.

As of March 2, 2025, the U.S. Treasury Department announced that it will no longer enforce BOI reporting requirements against U.S. citizens and domestic reporting companies. This decision effectively pauses the requirement to file once again.

The Treasury Department has indicated plans to propose a rule that would limit BOI reporting only to foreign reporting companies, meaning domestic entities may no longer be subject to these requirements. However, this change is not yet final and remains subject to the rulemaking process.

While this announcement provides temporary relief, it has also raised concerns among financial regulators who argue that limiting BOI reporting to foreign entities could weaken efforts to combat financial crimes. The original intent of BOI reporting was to address money laundering and the formation of shell companies, both domestic and foreign.

At this time, we recommend a wait-and-see approach until the final ruling is confirmed. We will continue to monitor updates and will notify you as soon as more definitive guidance is available.

If you have any questions, please don’t hesitate to contact our special project team at spteam@gpw.cpa

Gatto, Pope & Walwick, LLP
Certified Public Accountants