Treasury Department Suspends BOI Enforcement for U.S. Citizens and Domestic Companies

Treasury Department Suspends BOI Enforcement for U.S. Citizens and Domestic Companies

The Treasury Department announced on March 2, 2025, that it will not enforce penalties or fines associated with beneficial ownership information (BOI) reporting requirements against U.S. citizens and domestic reporting companies. According to Treasury Secretary Scott Bessent, this suspension applies under both the existing regulatory deadlines and after forthcoming rule changes take effect. The Treasury Department also plans to issue a proposed rulemaking that will narrow the scope of the rule to apply only to foreign reporting companies.

This policy change follows a series of back-and-forth legal actions that resulted in court stays, appeals, and extended deadlines over the past several months. This new enforcement policy provides clarity amid the recent regulatory uncertainty. Domestic companies that had been working to determine if they qualified for exemptions such as the public utility exemption, large operating company exemption, or tax-exempt entity exemption can now pause those efforts.

JSI recommends maintaining records of any beneficial ownership information already collected, as regulatory requirements may evolve over time. Companies with international ownership or significant foreign investment should continue to monitor this situation as enforcement against foreign reporting companies will proceed under the planned rulemaking.

If you have questions about how these changes affect your specific situation, please contact John Kuykendall or Brett Hallagan.