The Corporate Transparency Act’s (CTA) beneficial ownership reporting requirements are currently on hold pending legal challenges.
The CTA was enacted by Congress on January 1, 2021, as part of the National Defense Authorization Act. The CTA included significant reforms to anti-money laundering laws and is intended to help prevent and combat money laundering, terrorist financing, corruption, and tax fraud.
Under the act, small businesses in the United States need to file beneficial ownership information reports (BOIR) with the Department of the Treasury by January 1. This deadline is on hold due to federal court rulings.
In February 2025, a bill that would provide a one-year delay for small businesses from having to report their beneficial ownership information under the CTA passed the House of Representatives and was sent to the Senate. The U.S. Chamber sent a Key Vote Letter to the House supporting H.R. 736, the Protect Small Business from Excessive Paperwork Act of 2025.
Failure to submit the BOIR paperwork puts small business owners at risk of criminal penalties, imprisonment, and fines up to $10,000.
To learn more and stay up to date on the Corporate Transparency Act, download the Chamber’s User Guide.