With less than 50 days until the Jan. 1, 2025, CTA deadline, NSBA is urging the Treasury and FinCEN to clarify member and small-business obligations under this cumbersome law.
NOV. 19 | TODAY NSBA President and CEO Todd McCracken sent a letter to the U.S. Department of the Treasury and its Financial Crimes Enforcement Network (FinCEN) requesting clarity on the Corporate Transparency Act (CTA) implementation, and the countless questions looming from the small-business community ahead of the January 1, 2025 filing deadline.
In case you missed it, the CTA is a new law requiring small-business owners to submit reports on their beneficial owners' information (BOI) to a new database to be established and maintained by FinCEN.
Pushing back against this undue burden, from which big business is exempt, earlier this year, NSBA won a victory for small business in federal court over the CTA.
The basis of NSBA's winning argument centered around how the CTA's purpose of establishing a new database of small-business owners to be maintained by FinCEN is unconstitutional, particularly for how this database would not require a warrant for searching.
Because of this victory, entities who were part of NSBA as of March 1, 2024, are currently exempt from BOI filings required under the CTA.
While NSBA is proud to protect small business by this victory, an appeal over this ruling is currently pending, which could revoke the NSBA filing exemption. That said, NSBA is confident common sense will prevail when it comes to reforming or repealing the CTA, and we remain focused on ensuring direct access to information on prospective changes to the NSBA March 1 exemption.
Read our full letter to Treasury and FinCEN here, and urge Congress to act on repealing or reforming the CTA in NSBA's Action Alert center here.
