Complete reversal of CTA and BOI Report

In a shocking and significant development, the US Department of Treasury and Secretary of Treasury Scott Bessent have declared:

• A complete reversal of the CTA’s intent and enforcement framework.

• This effectively nullifies BOI reporting requirements for most U.S.-based entities.

• The scope of the BOI Report will be drastically limited to only include foreign reporting companies.

• The Department of Treasury does not intend to enforce any penalties or fines against US citizens or domestic reporting companies or their beneficial owners.

Effectively, this kills the BOI Reports’ purpose within the CTA legislation.

It will be necessary to change the rulemaking, given that this is a Congressional law and a legislature issue, but because it is to be enforced by the Executive Branch, this announcement effectively changes the law overnight.

Bridge to BOI will continue to provide relevant updates, but there will be little incentive and necessity for the vast majority of companies to file their BOI Reports moving forward.

How did this happen?

It started only two days ago - through a tweet on X.

Here's a summary of what transpired:

• On March 1, 2025, a user named Terrence K. Williams posted on social media platform X (formerly Twitter) asking for help regarding the BOI rule, mentioning concerns about potential fin..es and prison time for non-compliance.

• Elon Musk responded to this post with "I can look into it."

• The next day (March 2, 2025), the U.S. Treasury Department announced they would:

  • Stop enforcing penalties and fines associated with the BOI reporting rule

  • Not enforce penalties against U.S. citizens or domestic reporting companies

  • Issue a proposed rulemaking to narrow the scope of the rule to apply only to foreign reporting companies

• Treasury Secretary Scott Bessent called this "a victory for common sense" and stated it was part of "President Trump's bold agenda to unleash American prosperity by reining in burdensome regulations."

• The original user (Terrence K. Williams) then posted again, attributing this policy change to Elon Musk's intervention.

What a wild world we live in. One tweet reverses years of planning and policy.

Stay tuned, this will hardly be the end of the BOI saga.