Corporate Transparency Act – Update, March 2, 2025

Lawyers Mutual wishes to bring to your attention another update on The Corporate Transparency Act (“CTA”). On March 2, 2025, the U.S. Department of the Treasury released a press release titled, “Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies.” This press release comes just weeks after the United States District Court, Eastern District of Texas’s decision in Samantha Smith and Robert Means v. U.S. Department of Treasury, NO. 6:24-cv-336 (E.D. Tex., 2/17/25) which stayed the nationwide injunction. As a result of that decision, the CTA and its reporting obligations were once again back in full force. Failure to comply with the CTA meant significant penalties for noncompliance. However, the Treasury Department’s March 2nd press release clarifies the enforcement of the CTA as it relates to U.S. citizens and domestic companies.

Hinshaw Law recently published an article[1] which explains the March 2, 2025 update to the CTA and its enforceability. As Hinshaw’s article states, “…the Treasury Department announced, in no uncertain terms, that it will not enforce any penalties or fines against U.S. citizens or domestic reporting companies (or their beneficial owners) associated with the "beneficial ownership information" (BOI) reporting requirements under the CTA.”

The Hinshaw article also states, “The Treasury Department further noted that even when forthcoming changes to the CTA (as discussed in our prior update) take effect, they will still not be enforcing any related penalties or fines against U.S. citizens or domestic reporting companies (or their beneficial owners).”

LMICK encourages you to read both the U.S. Department of the Treasury’s press release, as well as Hinshaw Law’s article for further information. LMICK will continue to monitor the state of the CTA and bring to your attention any updates and developments.

[1] This article titled, “UPDATE: U.S. Department of the Treasury Terminates Enforcement of the Corporate Transparency Act Against U.S. Citizens and Domestic Companies“, was originally published in the Hinshaw & Culbertson LLP “Lawyers’ Lawyer” Newsletter. Republished with permission. Visit www.hinshawlaw.com for more information.