Corporate Transparency Act: BOI Reporting Ends for U.S. Companies — But Residential Real Estate Reporting Is a Different Story
FinCEN Permanently Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons
On August 11, 2026, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued a final rule that permanently removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (“BOI”) to FinCEN under the Corporate Transparency Act (“CTA”).
What Does This Mean for U.S. Companies?
For U.S. businesses that were concerned about the CTA’s beneficial ownership reporting requirements, the change is significant.
In March 2025, FinCEN issued an Interim Final Rule (“IFR”) that effectively eliminated the BOI reporting requirements for U.S. companies and U.S. persons. The August 2026 final rule makes those changes permanent.
As a result, U.S.-created companies are exempt from the CTA’s BOI reporting requirements and are no longer required to file BOI reports with FinCEN.
The final rule also makes two additional changes affecting U.S. persons:
Foreign companies: Foreign companies that are required to register to do business in the United States are no longer required to report information about U.S. persons who served as their “company applicants”—the individuals who assisted with the company’s registration in the United States.
FinCEN identifiers: U.S. persons who previously obtained FinCEN identifiers are no longer required to update or correct the information they provided when applying for those identifiers.
In short, the federal BOI reporting obligations that once applied broadly to U.S. businesses have been substantially eliminated.
Don't Confuse BOI Reporting With FinCEN's Residential Real Estate Rule
Although both requirements involve FinCEN, the Corporate Transparency Act's BOI reporting requirements are separate from FinCEN's Residential Real Estate Reporting Rule.
This distinction is particularly important for attorneys, real estate professionals, businesses, and individuals involved in residential real estate transactions.
The status of the Residential Real Estate Reporting Rule has not changed in the same way as the CTA's BOI reporting requirements.
According to FinCEN, on March 19, 2026, the U.S. District Court for the Eastern District of Texas issued an order vacating the Residential Real Estate Rule. FinCEN, together with the U.S. Department of Justice, has appealed that decision.
While the court's order remains in effect, reporting persons are not currently required to file Real Estate Reports with FinCEN and are not subject to liability for failing to file those reports.
What Should Businesses and Real Estate Professionals Do?
The recent changes demonstrate why it is important to distinguish between the various federal reporting requirements administered by FinCEN.
For U.S. companies, the CTA's BOI reporting requirement has been permanently removed under the August 2026 final rule. However, the separate Residential Real Estate Reporting Rule remains subject to ongoing litigation and should be monitored for further developments.
At PK Boston Law, we will continue to monitor changes affecting Massachusetts businesses, real estate transactions, and compliance requirements.
If you have questions about how these FinCEN changes may affect your business or a real estate transaction, contact PK Boston Law to discuss your particular circumstances.
