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The Corporate Transparency Act, and it’s required Beneficial Ownership Information reporting, are no longer in effect, according to a March 2 announcement by the U.S. Treasury Department.
The act, aimed at curbing money laundering, financing of terrorism, and similar illicit activities, was originally signed in January 2021. The original deadline for filing Beneficial Ownership Information (BOI) was Jan. 1, 2025. However, that deadline was pushed back by a number of court challenges to the law.
The announcement also noted any penalties or fines that were in process would not be enforced now or in the future. Under the Corporate Transparency Act (CTA) penalty structure, businesses in non-compliance with the BOI filing requirements could be fined up to $500 a day and up to $10,000 total annually.
The CTA specifically targeted small businesses and LLCs with few stakeholders. “Beneficial owners” were identified as anyone with 25 percent or more ownership of a company and required documents included the full name, date of birth, current address, copy of a government issued identification, and a social security, EIN, or ITIN for each person.
Small businesses were among the first to find fault with the scheme, with lawsuits being filed in several states to push back against the act.