Treasury Department Will Not Enforce BOI Requirements for U.S. Small Businesses. Here's What to Know.

Source:ENTREPRENEUR

n Sunday, the U.S. Treasury Department announced that it would not enforce the Beneficial Ownership Information (BOI) reporting requirement for U.S. citizens and domestic companies.

Business owners faced a March 21 deadline to complete the report, but the Treasury Department suspended the deadline.

BOI reporting is part of the Corporate Transparency Act (CTA), which passed in 2021 and went into effect in January 2024. The requirement mandated that an estimated 32.6 million small businesses provide personal details, like the names, addresses, and dates of birth, of their owners.

However, its legality was challenged in the courts, and American business owners received ever-changing messages about the report's deadline and whether it was required.

In a series of posts on X, the Treasury Department stated that it would not impose penalties or fines on U.S. citizens or domestic reporting companies for failing to file a BOI report.

U.S. Treasury Secretary Scott Bessent stated on X that suspending BOI reporting was "part of President Trump's bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy."

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