Treasury Secretary Scott Bessent on Sunday announced the department will not enforce any fines or penalties associated with the Corporate Transparency Act.
“This is a victory for common sense,” Bessent said in a statement. “Today’s action is 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.”
The legislation ordered businesses to report their ownership structures to the Financial Crimes Enforcement Network (FinCEN).
The law required over 32 million businesses to comply with these new reporting requirements, and many small businesses have lingered in limbo due to a series of “on-again-off-again” deadlines to file the transparency reports.
Businesses that did not comply with the requirements could be subjected to fines up to $591 per day and could face up to $10,000 in criminal fines and up to two years in prison.
The Treasury Department in a release confirmed it will propose a rule that will narrow the scope of the regulation to foreign reporting companies only to ensure it advances the interest of “hard-working American taxpayers and small businesses.”
Senate Banking Committee Chairman Tim Scott (R-SC) said on Sunday, “Biden’s failed implementation of beneficial ownership left millions of small businesses criminally liable. That’s why I partnered with @zachnunn to advance legislation to provide relief. @USTreasury got it right by focusing on entities of greatest threat to our nation’s security.”
Biden’s failed implementation of beneficial ownership left millions of small businesses criminally liable. That’s why I partnered with @zachnunn to advance legislation to provide relief. @USTreasury got it right by focusing on entities of greatest threat to our nation’s security. https://t.co/ibGTiM8bkI
— Tim Scott (@SenatorTimScott) March 3, 2025
President Donald Trump wrote in a statement, “Exciting news! The Treasury Department has announced that they are suspending all enforcement of the outrageous and invasive Beneficial Ownership Information (BOI) reporting requirement for U.S. Citizens. This Biden rule has been an absolute disaster for Small Businesses Nationwide.
He added, “Furthermore, Treasury is now finalizing an Emergency Regulation to formally suspend this rule for American businesses. The economic menace of BOI reporting will soon be no more.”
Sean Moran is a policy reporter for Breitbart News. Follow him on X @SeanMoran3.
