DENVER (DTN) -- The Trump administration has announced businesses such as farm operations will not face any penalties or fines for not filing Beneficial Ownership Information (BOI) with the Treasury Department's Financial Crimes Enforcement Network (FinCEN).

Treasury officials released details on Sunday stating they will waive enforcement penalties and will not enforce the beneficial ownership information rule against U.S. citizens or domestic companies going forward. A new rule will be forthcoming. Treasury will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only, the department stated.

"This is a victory for common sense," said Treasury Secretary Scott Bessent. "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."

The BOI rule was expected to impact more than 32 million businesses and roughly 230,000 farm operations. The deadlines for filing business ownership information had been delayed multiple times in recent months because of court decisions.

The BOI rule stemmed from the 2021 Corporate Transparency Act, which requires businesses to provide their business information from state incorporation reports to FinCEN. The law was passed as a way to curb financial crimes such as money laundering and fraud.

BOI details are free to file on the FinCEN website.

The National Federation of Independent Business (NFIB) released a statement following the suspension of enforcement of the rule. NFIB had helped lead litigation against the rule.

"NFIB greatly appreciates President Trump's strong support in this important effort to protect America's Small Business owners from what he correctly labeled an 'outrageous and invasive' Beneficial Ownership Information (BOI) reporting requirement," said Adam Temple, NFIB senior vice president for advocacy. "NFIB will continue to work with Congress to fight for Congressional repeal of the underlying statute and regulations that intrude into the privacy of small businesses and create a vast new government database on Americans. We thank President Trump and his administration for their willingness to stand up for small businesses and address the Beneficial Ownership Information reporting rule."

President Donald Trump also praised Treasury officials on social media for making the announcement.

"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. 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."

Chris Clayton can be reached at Chris.Clayton@dtn.com

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