What is the Corporate Transparency Act (CTA)?
The Corporate Transparency Act (CTA) is a U.S. law passed as part of the National Defense Authorization Act in January 2021. Its primary goal is to combat money laundering, tax evasion, terrorism financing, and other illicit financial activities by increasing transparency into the ownership structures of U.S. businesses.
Under the CTA, millions of U.S. businesses are required to submit a Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network (FinCEN). These reports identify the individuals who ultimately own or control a business, whether directly or indirectly.
BOI Reporting Requirements: What You Need to Know
The legal status of the Corporate Transparency Act (CTA) has been uncertain, leaving many business owners, attorneys, and tax professionals unsure about their obligations. As of February 19, 2025, beneficial ownership information (BOI) reporting requirements were officially reinstated.
However, on March 2, 2025, the Treasury Department announced a major change to the enforcement and scope of the CTA’s BOI reporting rules.
Key Updates
- The Treasury Department will not enforce penalties or fines related to BOI reporting under the current regulatory deadlines.
- Once upcoming rule changes take effect, U.S. citizens, domestic reporting companies, and their beneficial owners will no longer be subject to BOI reporting requirements or penalties.
- The Treasury Department plans to issue a proposed rule narrowing BOI reporting requirements to apply only to foreign reporting companies.
These changes are intended to ease the regulatory burden on small businesses and better align the rules with the public interest.
Additional details will be available once the proposed rule is released. You can read the official press release here.
Ready to File Your BOI Report?
At Parasec, we make BOI report filing simple, secure, and efficient through our online filing platform. Whether you’re submitting your first report or updating information, our streamlined process ensures fast, compliant filings.
Benefits of Using Parasec for BOI Reports
- FinCEN API Participant: As a FinCEN-authorized API participant, our system connects directly to FinCEN for fast and secure submissions.
- BOI Report Dashboard: Easily access, update, and manage BOI reports in one place.
- Save Progress & Resume Later: Collect data at your own pace without losing work.
- Filing Confirmation: We provide a confirmation of submittal once your BOI report is successfully filed with FinCEN.
- Data Security: We utilize industry standards to ensure security and redact sensitive information in our BOI software.
- Expert Support: Our customer support team is available during regular business hours. You will always speak to a professional, polite, and knowledgeable person who cares about your business.
Get Ready to File Your BOI Report
To ensure a smooth filing process, we suggest using our BOI Filing Prep Checklist to gather all necessary documents. Additionally, we have created an FAQs page; an Identifying Beneficial Owners informational sheet; and a Trusts & BOI Reports document, which outlines key considerations for trusts under the CTA.
If you have any questions or are ready to file, contact our BOI compliance specialists today.
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