CLIENT ALERT: Corporate Transparency Act Compliance Update – FinCEN Hits Pause Again; Will Issue New Interim Final Rule

Following an announcement from FinCEN on February 27, 2025, the Corporate Transparency Act (“CTA”) is once again on hold.

On Thursday, FinCEN announced that it will not issue any fines or penalties or take any other enforcement actions against any companies for failure to comply with the CTA’s beneficial reporting requirements by the current deadlines. FinCEN will issue a new interim rule extending the reporting deadlines and providing further guidance no later than March 21, 2025. FinCEN also stated that it will solicit public comment on potential changes to CTA reporting requirements in connection with a notice of proposed rulemaking anticipated to be issued later this year aimed at reducing the reporting burden on small businesses.

The announcement comes following a dizzying sequence of court cases challenging the constitutionality of the CTA, which intermittently suspended enforcement. Most recently, on February 17, 2025, a federal district court judge in the Eastern District of Texas lifted a previous stay he had ordered, thereby reinstituting the CTA.

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