Continued changes in Corporate Transparency Act (CTA) status for beneficial ownership information (BOI) reporting requirements is a Small-Business burden that must be resolved immediately.
FOR IMMEDIATE RELEASE
Thursday, Jan. 23, 2025
Contact Molly Day | 202-552-2904
Washington, D.C. – Late Tuesday, Feb. 18, 2025, a District Judge in Texas lifted the temporary injunction barring the Financial Crimes and Enforcement Network (FinCEN) from enforcing Beneficial Ownership Information (BOI) reporting. This is the latest in a long line of court decisions leaving small-business owners in the lurch with no certainty on whether or not they must file their their BOI reports.
This latest—now overturned—injunction was from the U.S. District Court for Eastern Texas in Smith v. U.S. Department of the Treasury. This was one of several other lawsuits that followed NSBA’s suit and is making its way through the courts. No decision has yet been made in NSBA’s case which resides in the Eleventh Circuit Court of Appeals.
FinCEN recently published guidance stating they are moving the BOI reporting deadline to March 21, and even alluded to ongoing adjustments to that deadline, stating: “Notably, in keeping with Treasury’s commitment to reducing regulatory burden on businesses, during this 30-day period FinCEN will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks.”
NSBA is strongly urging flexibility and ample time be provided to small businesses given the constant back-and-forth they have been dealing with regarding the Corporate Transparency Act (CTA), not to mention the fact that the House handily passed legislation to delay by one year the CTA.
Below is a statement from NSBA President and CEO Todd McCracken.
“This latest court action creates even more uncertainty for our members and the millions of small businesses we represent. This burdensome rule could result in well-intending, but justifiably confused, small businesses facing fines up to $591 per DAY and up to two years of jail time.
“And while any member of NSBA as of March 1, 2024 is exempt from this rule, NSBA cannot stand by and let this unfair burden ensnare countless other small businesses.
“I cannot stress enough what a major problem this back-and-forth and the massive uncertainty it creates is for the millions of small businesses across this country. Thankfully, the House voted to approve legislation that would delay the CTA and BOI reporting for one year—now we desperately need the Senate to act.
“NSBA filed the first lawsuit in the nation against the CTA, and we will continue to pursue every legal avenue to overturn this unconstitutional rule. We will push for Congress to do the right thing and see the CTA for what it truly is: a burden of uncertainty and confusion that will do very little to actually stop money laundering.”
Click here for NSBA’s CTA Resource page.
Celebrating nearly 90 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsbaadvocate.org or follow us at @NSBAAdvocate.
