On Sunday, the US Treasury Department announced that it would not implement Beneficiary information (Boi) Reporting of demand for US citizens and household companies.
Business owners faced a March 21 Deadline To complete the report, but the Treasury Department suspended the deadline.
BOI reporting is part of Corporate Transparency Act (CTA), which passed in 2021 and entered into force in January 2024. The request mandated that an estimate 32.6 million Small businesses provide personal details, such as names, addresses and dates of their owners.
However its legality was objected in courtsand owners of American businesses received ever -changing messages in relation to the period of the report and if required.
In a series Posts on xThe Treasury Department stated that it would not impose fines or fines on US citizens or domestic reporting companies for not submitting a BOI report.
US Treasury Secretary Scott Bessent stated in x This BOI suspension reporting was “part of President Trump's bold agenda to bring out American prosperity by regenerating into heavy regulations, especially for small businesses that are the backbone of the American economy.”
President Donald Trump supported the Treasury Department on social truth On Sunday for the suspension of the request, calling the BOI report “wild and invading”.
“Moreover, the treasure is now completing an emergency regulation to officially suspend this rule for American businesses,” Trump wrote. “The economic threat of BOI reporting soon will no longer be.”
According to the emergency regulation, the Treasury Department will suspend BOI's reporting to US businesses.
The department wants to narrow BOI's demand field from all businesses in foreign reporting companies. This means that according to the emergency rule, local companies are excluded from the introduction of a BOI report.
What is a BOI report?
BOI reporting is part of Corporate Transparency Act (CTA), which passed in 2021 and came into force in January 2024.
BOI report describes who owns a company looking for businesses with Fewer than 20 employees To identify individuals with at least 25% ownership.
The rule intended to prevent crimes such as fraud and money laundering by making ownership structures more transparent.
To complete the BOI report, the companies detect their legal name, any trade name, the main place of business address, the jurisdiction of formation or registration, and the taxpayer's ID number. They also provide Details of each useful ownerincluding full legal name, date of birth, residential address and unique identifier from a government ID.
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