'This is a victory for common sense,' said Treasury Secretary Scott Bessent
President Donald Trump praised the Treasury Department on Truth Social on Sunday for announcing it was suspending enforcement of the Beneficial Ownership Information (BOI) reporting requirement for U.S. citizens and domestic companies.
The Biden-era initiative says you may be required to report certain information on your beneficial owners to the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), according to the IRS.
Trump called the requirement "outrageous and invasive."
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President Trump praised the Treasury Department late Sunday for its recent decision to suspend enforcement of the Beneficial Ownership Information reporting requirements. (REUTERS/Dado Ruvic/Illustration / Reuters Photos)
"Exciting news! The Treasury Department has announced that they are suspending all enforcement of the outrageous and invasive Beneficial Ownership Information (BOI) reporting requirement for U.S. Citizens," Trump wrote. "This Biden rule has been an absolute disaster for Small Businesses Nationwide. Furthermore, Treasury is now finalizing an Emergency Regulation to formally suspend this rule for American businesses. The economic menace of BOI reporting will soon be no more."
The Treasury Department announced in a series of posts on X that penalties or fines associated with BOI will not be enforced, and neither will penalties against U.S. citizens or domestic reporting companies or their beneficial owners.
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BOI penalties or fines will not be enforced, and neither will penalties against American citizens, domestic reporting companies or their beneficial owners, the department said. (iStock / iStock)
Instead, the focus will turn to foreign companies only.
"Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest," the department said.
President Trump's now Treasury secretary, Scott Bessent, speaks during his Senate Finance Committee confirmation hearing on Jan. 16. (Chen Mengtong/China News Service/VCG via Getty Images / Getty Images)
"This is a victory for common sense," Treasury Secretary Scott Bessent said. "Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy."
This decision comes as Trump’s executive orders are tweaking border tariffs and will align with his broader economic pledge of cutting between $1.5 trillion and $2 trillion in federal spending.