The Corporate Transparency Act (CTA) must be delayed, dismantled, and repealed in the courts, by executive action, or on Capitol Hill.
Leading the fight since 2022, NSBA and the Small-Business community are continuing efforts against the unconstitutional Corporate Transparency Act (CTA) in the new year.
After a number of federal courts issued rulings in late 2024 that were complimentary to NSBA’s victory over the CTA in a separate case, the law is currently under a nationwide injunction; however, the halt is temporary.Â
Should this block over the U.S. Department of the Treasury and its Financial Crimes Enforcement Network (FinCEN), preventing further enactment and enforcement of beneficial ownership information (BOI) reporting requirements due under the CTA be lifted once again, Small-Business owners will be plunged into compliance chaos for the confusion related to these court rulings and the overall lack of clarity for the law’s requirements from its governing agencies.
To address this chaos and lack of clarity, as well as the CTA’s inherent undue bureaucratic burden imparted exclusively over the Small-Business community for its exclusion of banks and larger entities - not to mention its manipulated purpose of passage centered around unfounded claims that Small-Business owners are a significant problem for facilitating foreign money laundering - last Congress, Rep. Warren Davidson (R-Ohio) and Sen. Tommy Tuberville (R-Ala.) introduced the Repealing Big Brother Overreach Act (H.R. 8147, S. 4297) to repeal the CTA.
With the 119th Congress underway, this week, NSBA and the Small-Business community urged these Members to reintroduce this important legislation, which 100 Members in the House and 18 Senators supported last Session. Sen. Tuberville announced reintroduction of a Senate bill this week, but a bill number has yet to be assigned.
Small Businesses are not criminals and do not wish to be treated as such by the federal government. NSBA and the Small-Business community are not opposed to efforts to fight criminal activity, including policy to combat foreign money laundering, but these efforts must be targeted, tailored, and not unfairly exaggerated to affect the drivers of our country’s economy.
The CTA is not it. Rather, it is a sledgehammer imposing exorbitant fines that could close down millions of small businesses forever and penalties that may criminalize tens of millions of law-abiding small business owners.
Read our full letter to Congress here, and join our fight over the CTA, including continued efforts against this cumbersome law in the courts, across Capitol Hill, and through leadership in Washington.
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