Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies

The Corporate Transparency Act required many businesses to report their beneficial ownership to the federal government to determine foreign ownership, with severe penalties for non-disclosure. The CTA was supposed to go into effect January 1, 2024, but a series of lawsuits have delayed its enforcement. On March 2, 2025, the Treasury Department announced that even if the law goes into effect, the Department will not enforce any penalties against any U.S. citizens or domestic reporting companies. The Treasury Department also announced its intention to promulgate regulations narrowing the CTA’s scope.

In the short term, this likely means that wholly domestic businesses do not need to fear the steep penalties threatened under the CTA. You should, however, consult with your counsel or financial advisors to determine if your business qualifies as a reporting company. If so, you may consider gathering the information necessary for any beneficial ownership report filings, to be prepared if the courts hold the law enforceable and require the Treasury Department to enforce it. WFCA will continue to monitor for additional updates or guidance.