Treasury Announces BOI Reporting Suspension—Was It Out of Boredom During the Oscars?

In a bold, unexpected, and oddly-timed Sunday evening announcement—conveniently competing with the Oscars for America’s attention—the U.S. Treasury Department declared that it would no longer enforce the Corporate Transparency Act (CTA) against U.S. businesses and citizens. The Treasury also revealed plans to rewrite the rule so that it only applies to foreign companies, sparking questions about both the motivation behind the decision and why it was released when most of the country was debating red carpet outfits.

Breaking News: The Government Suspends Its Own Rule, But Quietly

For months, business owners, accountants, and compliance officers have been scrambling to meet the ever-shifting deadlines of Beneficial Ownership Information (BOI) reporting under the CTA. But just as they were finally wrapping their heads around the process, the Treasury Department threw the entire thing out the window—announcing that not only would it not enforce penalties, but it would also rewrite the rule entirely to exempt all U.S. citizens and businesses.

And when did they choose to share this monumental decision? On a Sunday night. During the Academy Awards.

One can only assume that Treasury officials, suffering through the four-hour Hollywood spectacle, found themselves growing restless somewhere between the third monologue about AI replacing screenwriters and the 15th standing ovation for a film nobody actually saw. And so, in an act of sheer bureaucratic spontaneity, they decided to make some policy history to entertain themselves.

A Victory for Small Business—or Just a Shrug?

Of course, Treasury Secretary Scott Bessent framed the decision as a win for small businesses—because nothing says “economic freedom” quite like a hastily released policy change buried beneath celebrity gossip.

“This is a victory for common sense,” Bessent proclaimed, possibly while flipping between the policy announcement and the Best Actor acceptance speech. “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations.”

Translation: That thing we made you worry about for months? Never mind.

What This Really Means for the Future of Government

Beyond the question of why Treasury decided to drop this news in the middle of an awards show, this move also signals a major shift in regulatory philosophy.

• Rule Today, Gone Tomorrow: The government is now officially in the business of creating complex regulations, making businesses scramble to comply, then abruptly canceling them before they take effect. At this rate, businesses may soon be required to anticipate which laws will survive past their deadline rather than actually following them.
• Foreign Companies, You’re On Your Own: The new version of the rule will reportedly only apply to foreign companies, reinforcing the long-standing American tradition of outsourcing regulatory headaches abroad while cutting domestic compliance requirements.
• Is This the Start of “Oscars Policy” Announcements? Given the success of this stealthy timing, should we now expect major policy decisions to be made exclusively during live television events? Perhaps next year’s Super Bowl will feature an announcement about tax cuts hidden in a Doritos commercial.

A Sunday Surprise With Major Implications

In the end, BOI reporting is dead for U.S. businesses. Small business owners can breathe a sigh of relief, accountants can cancel their aspirin bulk orders, and compliance officers can return to their usual existential dread about whatever rule is coming next.

But the real takeaway? If you ever want to know what the government is really up to, skip the Oscars and check the Treasury Department’s website.