R.I.P BOIR for U.S. Companies - Major Shift in Corporate Transparency Act

After nearly a year of on again, off again enforcement of the Corporate Transparency Act (“CTA”), we finally have some much-needed clarity. In a surprising and significant policy shift, the Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule that dramatically alters the scope of the CTA. In short: BOI reporting is now RIP—for U.S. companies, that is.

What’s Changing?

Effective March 21, 2025, U.S. companies and U.S. persons will no longer be required to report beneficial ownership information (BOI). The interim final rule redefines “reporting company” to include only foreign entities that are registered to do business in the United States. This means all domestic entities are officially off the hook for BOI reporting obligations under the CTA.

A Quick Recap: What Is the CTA?

Enacted in 2021, the Corporate Transparency Act was intended to combat financial crimes by requiring companies to disclose their beneficial owners to FinCEN. The idea was to prevent bad actors from using shell companies to hide illicit activity. However, the CTA faced a rocky rollout, with multiple delays triggered by legal challenges and widespread concern—especially from small business advocates—about the reporting burden.

Key Takeaways from the Interim Final Rule
  • Redefined Scope: Only foreign entities registered to do business in the U.S. are now considered “reporting companies.”
  • U.S. Entities Exempt: Domestic companies are fully exempt from BOI reporting requirements.
  • No U.S. BOI from Foreign Companies: Foreign reporting companies are also not required to report U.S.-based beneficial owners.
New Deadlines for Foreign Reporting Companies

Foreign entities that now fall under the updated definition and do not qualify for an exemption must comply with new deadlines:

  • Previously Registered Entities: Must file BOI reports within 30 days of the interim final rule’s publication date.
  • New Registrations: Entities registering on or after the publication date have 30 calendar days from the effective registration date to file their initial BOI report.

These deadlines are intended to offer foreign reporting companies sufficient time to adjust to the new requirements.

What’s Next?

While this shift provides welcome relief for U.S. businesses, the situation remains fluid. Additional changes or clarifications may still come. Businesses—especially those with international ties—should continue monitoring developments, and we’ll keep you updated as new information becomes available.