FinCEN exempts U.S. firms and individuals from Corporate Transparency Act reporting

More than two years after the Treasury began accepting beneficial ownership information, FinCEN announced a final rule that exempts U.S. companies and U.S. persons from the Corporate Transparency Act’s reporting obligations, effectively sidelining the law for domestic businesses. The exemption applies to about 99% of the roughly 32 million entities that would have been covered, and FinCEN will delete any U.S. person data from its database, coordinating with the National Archives.

The move follows a wave of litigation, including a district court ruling that the CTA exceeded congressional power and a later reversal by the 11th Circuit that upheld the statute. While U.S. firms no longer need to file, foreign reporting companies must still disclose foreign beneficial owners, and non-U.S. individuals remain required to update their information. The rule becomes effective upon its publication in the Federal Register. Treasury’s action resolves administrative uncertainty after Congress declined to repeal the law.