UPDATE: The U.S. Treasury Department states: All entities created in the United States — including those previously known as “domestic reporting companies” — and their beneficial owners are now exempt from the requirement to report beneficial ownership information (BOI) to FinCEN. You can find the latest information here.
What is the CTA?
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 were required to file beneficial ownership information reports (BOIR) with the Department of the Treasury by January 1. This deadline was 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 would have put small business owners at risk of criminal penalties, imprisonment, and fines up to $10,000.
