Small Businesses Win Relief From Corporate Transparency Act Reporting
Key Highlights
- BOI relief: US companies and owners are permanently exempted
- Data deletion: FinCEN will purge previously collected US ownership data
- $9B savings: Treasury estimates annual compliance savings at $9 billion
ITASCA, IL — The American Supply Association (ASA) and its coalition partners at the S-Corp Association have secured significant relief for US small businesses after the Department of the Treasury finalized revisions to beneficial ownership information (BOI) reporting requirements and committed to deleting sensitive ownership data already collected from millions of business owners.
The final rule, issued by the Financial Crimes Enforcement Network (FinCEN), permanently removes BOI reporting requirements for US companies and US persons. It also directs FinCEN to delete previously submitted BOI associated with US persons from the federal database.
Final Rule Removes Reporting Burden for Domestic Businesses
The Corporate Transparency Act (CTA), enacted by Congress in 2021, established BOI reporting requirements intended to help law enforcement combat money laundering and other illicit financial activity. The requirements took effect in 2024 and initially applied to tens of millions of US businesses, requiring covered companies to submit identifying information about owners and controlling individuals to FinCEN.
Following legal challenges and sustained advocacy from the small-business community, Treasury temporarily exempted US companies and US persons from the requirements in March 2025. FinCEN finalized that relief Aug. 11, 2026, with the rule taking effect Aug. 14.
BOI Database Will Be Purged
A key provision of the final rule directs FinCEN to delete BOI previously collected from US owners and entities. The agency estimates the action will affect approximately 15 million entities and tens of millions of individuals.
ASA and its coalition partners have argued that requiring legitimate US businesses to submit sensitive personal information created unnecessary privacy and compliance concerns without providing meaningful law enforcement benefits.
Treasury Projects $9 Billion in Annual Savings
Treasury estimates the revised rule will generate approximately $9 billion in annual compliance savings for businesses.
ASA said that estimate does not account for the time and money Main Street employers have already spent trying to understand and comply with the original requirements.
The association has spent five years advocating for changes to the CTA, working with coalition partners to educate policymakers about the impact of the reporting requirements and push for relief from what it considers an unnecessarily broad federal mandate.
“Treasury’s action is a significant win for Main Street businesses, but our work is not finished,” said ASA VP of Advocacy Steve Rossi. “While the final rule provides important relief by narrowing these reporting requirements, the underlying law remains in place and a future administration could revisit this approach. ASA will continue working with our coalition partners to pursue a permanent solution that protects small and family-owned businesses from unnecessary paperwork, compliance costs and privacy risks.”
ASA Continues Push for Permanent Relief
ASA said its advocacy campaign reflects concerns shared by small and family-owned businesses that federal reporting requirements can impose significant administrative and privacy burdens on companies that are not involved in illicit activity.
While the final rule provides permanent regulatory relief for US companies and US persons under the current administration's approach, ASA will continue working with its coalition partners to seek a longer-term legislative solution to the BOI reporting issue.