U.S. Treasury revokes beneficial ownership reporting for domestic businesses

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a final rule permanently revoking the requirement for U.S. persons and companies to report beneficial ownership information (BOI) under the 2021 Corporate Transparency Act.

This decision makes permanent an interim rule established in March that had previously limited reporting requirements to foreign entities. As part of this reform, the Treasury is also deleting ownership data that American businesses and individuals had previously submitted. While U.S. domestic reporting requirements are eliminated, foreign companies reporting on behalf of foreign individuals must still comply with the regulations.

Alabama Secretary of State Wes Allen and Representative Jason Smith both praised the move, characterizing it as a significant reduction in government red tape for small businesses. Supporters noted that the previous requirements imposed financial and administrative burdens on small business owners, including costs associated with professional preparation of reports.