ARTICLE | March 06, 2025
Authored by FMF&E
Big news for businesses: On March 2, 2025, the U.S. Treasury Department suspended the March 21, 2025, filing deadline under the Corporate Transparency Act (CTA) for all domestic companies and U.S. citizens. In other words, if you were preparing to file, you don’t have to—at least for now.
What Changed?
Originally, the CTA required many U.S. businesses to report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) to help prevent money laundering and other financial crimes. However, the Treasury has now announced that it is working on a rule change that would limit the CTA’s filing requirements to foreign reporting companies only—not domestic businesses.
Who Are Foreign Reporting Companies?
Under the CTA, these are entities formed under foreign law that have registered to do business in the U.S. by filing with a secretary of state or a similar government office.
Why the Change?
This shift follows a legal battle that included a decision from the Eastern District of Texas (Smith v. U.S. Department of the Treasury, Feb. 17, 2025), which lifted the last remaining nationwide injunction against the CTA’s enforcement. While the CTA has faced multiple court challenges, including at the Supreme Court level, the Treasury’s latest move significantly changes the playing field.
What Happens Next?
A few key things to keep in mind:
- No reporting requirement for domestic companies or U.S. citizens—for now.
- The Treasury’s proposed rule could face legal challenges since it conflicts with the CTA’s original text.
- Congress is reviewing possible changes to the law, so more adjustments could be coming.
- No word yet on what happens to data already filed—but businesses that have submitted reports aren’t required to update them.
What Should Businesses Do?
For now, domestic businesses can pause their CTA compliance efforts. However, because the legal landscape is still evolving, staying informed is critical. If your company operates internationally or has a complex structure, you may still be affected.
If you have any questions about how these changes impact your business, our team is here to help. Reach out to our office for the latest updates and guidance.
The FMF&E team is eager to learn about you and your business. We are a Central New York based certified public accounting firm serving nationwide clients since 1980. Our experienced and dedicated team provides audit, accounting, tax and consulting services to businesses throughout the United States. Our clients include many energy companies, financial institutions, construction and real estate developers, manufacturers, professional services, and wholesalers and distributors.
FMF&E is a team of over 85 highly skilled and motivated professionals. Our team members possess additional highly valued industry certifications such as Certified Valuation Analyst, Certified Fraud Examiner, Certified Credit Union Internal Auditor, NAFCU Certified Compliance Officer, and more. Our growth has come from applying a strong results-oriented approach to servicing our clients.
For more information on how FMF&E can assist you, please email info@fmfecpa.com.