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If you think the CTA doesn't affect you, think again. Join NSBA on Thursday, Jan. 25 at 2:00 p.m. ET for a fireside chat to get the latest on what’s happening with the Corporate Transparency Act (CTA). NSBA President Todd McCracken will be joined by CTA expert Tim Terry, General Counsel, Hartz Capital, Inc. where they will provide an update of the NSBA lawsuit over the CTA, what reporting means now that it is in effect for new business formations, how the reporting process is working so far, and efforts on Capitol Hill to delay and repeal the CTA. Todd and Tim will leave ample time for questions and will boil down what this very complicated law and reporting process means for your business. Please register here.

Much in store for small business in 2024, including new NSBA Board Leadership. FOR IMMEDIATE RELEASE Jan. 8, 2024 Contact Molly Day202-552-2904 mday@nsba.biz Marilyn Wilson Lund Heads New Leadership at NSBA Washington, D.C. – The National Small Business Association (NSBA) is kicking off 2024 with new Board leadership led by Marilyn Wilson Lund, founding partner of WAV Group, a full service consultancy in and the leading provider of consumer research in residential real estate and President of RETechnology.com, North America’s largest real estate technology education portal. Wilson Lund has been an active member of the NSBA Board of Trustees for many years. “Marilyn brings to the table her well-honed talent for marrying big picture growth with strategic operational improvements and has helped our organization not only build upon our core competencies, but urged us to seek additional avenues for content, outreach and advocacy,” stated NSBA President Todd McCracken. “Marilyn’s expertise at understanding where an organization is today and helping it move to where it needs to be down the road will be a tremendous asset as we begin implementing our strategic plan in the coming two years.” Joining Ms. Wilson in leadership positions on the NSBA Board of Trustees for 2024 are: Michael Canty, Allow Bellows and Precision Molding in Cleveland, Ohio as First Vice Chair; Malcolm Prouty, LeProuty Properties in Austin, Texas, as Treasurer; Bill Belknap, AEONRG in Downington, Pennsylvania as Vice Chair for Advocacy; Kevin Johnson, NexGen Interactive in Cleveland, Ohio as Secretary Joan Myers, Strategic Link Partners in Moncure, North Carolina as Vice Chair for Communications Sanjyot Dunung, Alma Global Knowledge Media in New York, N.Y. as Vice Chair for Membership; and Bob Treiber, Boston Engineering Corporation in Boston, Mass. as Immediate Past Chair “I’ve spent my career helping businesses think strategically and utilize data and technology, and I can’t wait to help NSBA embark on what I know is going to be a very pivotal year in 2024,” stated Wilson. “I look forward to ensuring that the needs of small business are top-of-mind for policymakers in D.C. and throughout the election and am proud to help lead an organization known for its pragmatism and nonpartisanship.” Please click here for more on NSBA’s Board of Trustees. Celebrating more than 85 years in operation, NSBA is a member-driven nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S., and we are proud to be the nation’s first small-business advocacy organization. Please visit www.nsba.biz and follow us at @NSBAAdvocate. ###

Companies may now begin submitting their beneficial ownership information reports. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is now accepting beneficial ownership information reports, part of the Corporate Transparency Act (CTA), now in effect for newly formed companies. Existing companies will not have to comply until Jan. 1, 2025. RELATED | NSBA Sues Treasury, Yellen Over Certain and Unclear CTA Requirements While beneficial ownership information reporting is only required once - unless the filer needs to update or correct information – NSBA maintains that the CTA is unconstitutional. Furthermore, the guidance provided from FinCEN is vague, lacks details on who is actually required to report, and is unclear on what fully constitutes a "beneficial owner." Generally, under the current provisions of the CTA, reporting companies must provide four pieces of information about each beneficial owner: Name; Date of birth; Address; and The identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport, or a non-expired identification document issued by a State (including a U.S. territory or possession), local government, or Indian tribe. If none of those documents exist, a non-expired foreign passport can be used. An image of the document must also be submitted. RELATED | CTA Survey Shows Impending Costs for Small Business in 2024 In Nov. 2023, NSBA filed a lawsuit over the lack of clarity in the CTA and the inevitable administrative costs this new practice will impart on small-business owners across the country. A ruling on the case is still pending. For more information on these new reporting requirements, please review FinCEN’s Small Entity Compliance Guide, or visit fincen.gov/boi.

Congress is working to create regulatory authority oversight for the NLRB. A resolution to overturn the National Labor Relations Board’s (NLRB’s) new joint-employer rule advanced through a House panel as businesses carry on a major lobbying campaign to block the regulation. The Committee on Education and the Workforce voted 25-20 on Tuesday to approve the resolution (H.J. Res. 98), which allows lawmakers to undo agency rulemaking in certain circumstances. The NLRB’s new joint-employer  regulation set to take effect in February adjusts regulations for employers for multiple companies to be jointly liable for labor law violations. The rule has faced fierce opposition on the Hill from Republicans and some Democrats. The resolution now heads to the House floor, where passage is likely. In the Senate, Sen. Joe Manchin (D-W.Va.) has ardently opposed the NLRB rule, and Sen. Kyrsten Sinema (I-Ariz.) has also indicated she may vote to block it, raising the prospects that the resolution will pass Congress. However, the resolution is vulnerable to a presidential veto and could be rejected by President Joe Biden. Opponents of the rule have said it could harm jobs and dramatically increase costs to employers and consumers. Some senators have also said the labor board’s move could have a negative impact on older Americans by raising regulatory costs for senior living facilities that often contract out work to service providers—and would be considered joint employers under the rule. Follow NSBA as we continue tracking this change from the NLRB on Capitol Hill and across Washington.

Members of Congress are looking for additional insight on the NLRB’s changes to the joint-employer definition. This week, Rep. Roger Williams (R-Texas), Chairman of the House Small Business Committee, and Ranking Member Nydia Velazquez (D-N.Y.) sent a letter to Chair of the National Labor Relations Board (NLRB) Lauren McFerran regarding a recent rule change to the Standard for Determining Joint Employer Status. RELATED | Our Latest on the NLRB Joint-Employer Cosigned by fellow Small Business Committee Members, Chair Williams detailed concerns to the NLRB around changes expanding the joint-employer definition, focused on how the change allows a joint employer finding based solely on indirect and unexercised control. The letter further contended the change removes clear standards for determination and limits how employers can predict risks and costs of contracts with providers, vendors, subcontractors, and franchisees. NSBA has long warned about the negative consequences of the joint employer rule changes and urges policymakers to craft policy that is clear in its requirements for employers and employees. We we look forward to learning more from the NLRB through this congressional correspondence. Read the full list of questions submitted to the NLRB for clarity on changes to the joint-employer rule from the Congressmen here. Click here to read NSBA’s comments on the rule.

Part III of our Service to Success Series - watch the webinar any time! On Nov. 16, the NSBA Veterans’ Network hosted its third installment of the “Service to Success” virtual webinar series. Led by Graham Plaster, Director of Defensewerx business Nautilus, and Ben Stinson, CEO of FedSherpas, the webinar gave NSBA members an advanced “how to” for fast-tracking defense procurement as a small federal contractor. From PIAs to OTAs, you can find all the keys to accelerating acquisition by watching our recording here. Learn more about NSBA’s Veterans’ Network.

Joining small-business industry leaders, NSBA applauds the IRS for its common sense decision to delay new, cumbersome 1099-K reporting requirements. On Nov. 21, 2023, the Internal Revenue Service (IRS) issued Notice 2023-74, a policy change that significantly impacts taxpayers who engage in e-commerce. As a part of President Biden’s American Rescue Plan Act of 2021, the IRS was directed to amend the reporting threshold for third-party settlement organizations, like PayPal, Venmo, CashApp. As an exclusion, Zelle was not included; however, this change means that taxpayers who recorded $600 or more in transactions in the course of a calendar year would have their aggregate transaction amounts reported to the IRS by their third-party settlement organization, as well as be issued an IRS form 1099-K. Previously, payees would only have their information reported by the settlement organization if they exceeded 200 transactions with a combined $20,000 in payments. Given the complexity of the reporting requirements, the enormous volume of taxpayers affected by the change, and the potential for confusion, the IRS has now issued Notice 2023-74, electing to postpone the effective date of the new requirement. With this delay, the IRS is calling 2023 “an additional transition year” between the previous threshold and the new one, which was intended to take effect in 2022. As a result of the delay, for 2023, taxpayers will only receive a form 1099-K should they exceed the 200 transaction/$20,000 mark. That said, as part of the IRS plan to phase-in the new standard, for tax year 2024, taxpayers will receive a form 1099-K if they exceed $5,000 in taxable income through these payment services. NSBA applauds the IRS decision to delay implementation of the new reporting standard and will continue to provide updates as we monitor the regulatory process.

Unduly burdening small businesses under the CTA is not the way to stem money laundering. Last week, NSBA’s legal team made its oral arguments in the lawsuit against the U.S. Department of the Treasury at the Huntsville U.S. District Court. RELATED | Think the CTA doesn't affect you? Think again. The case is a challenge to the constitutionality of the Corporate Transparency Act (CTA) and specifically the law’s beneficial ownership reporting requirements. The law would require nearly every American who runs or wants to form a corporation or LLC to give the Financial Crimes Enforcement Network (FinCEN)deeply personal information of its owners like date of birth, current address, and an image of their driver’s license. During oral arguments, NSBA – on behalf of the entire nation’s small-business community – argued that CTA has been mired in confusion and ambiguities start to finish. Not only is it bad policy, it is unconstitutional. Commenting at the courthouse following the hearing, NSBA President and CEO Todd McCracken stated, “Americans who are not suspected of doing anything wrong are being asked to provide deeply personal information to a government agency, which is putting the information in a database for criminal law enforcement purposes. These small-business owners will have to pay on average $8,000 in compliance costs in the first year alone. Small-business owners justifiably have little confidence in the federal government’s willingness to secure their personal data, the law calls for the government to share this information with foreign governments.” The oral arguments additionally focused on challenges to the CTA for violating plaintiff’s First, Fourth, and Fifth Amendment rights while also simply being beyond the scope of Congress’s powers. “Congress, whether or not it has good intentions, is always constrained by the Constitution,” said John Neiman, one of the attorneys leading the NSBA legal team. “Our challenge is trying to get Congress to follow the law and not create an unconstitutional burden on Americans.” Isaac Winkles, the owner of Alabama Property Management, Inc. in Huntsville, along with other local business owners and NSBA members, was also in attendance during the oral arguments. A ruling from the judge is expected before the end of the year. Follow NSBA for the latest on how the CTA is not the way to stem money laundering. Click here to learn more.

Big things happening for small-business legislation on Capitol Hill. Recently, Congress considered the following bills, including some disposition in their respective Chambers denoted below: H.R. 4666 – Rep. Aaron Bean (R-Fla.) of the House Small Business Committee introduced this bill, which would require the Inspector General of the Small Business Administration to submit a quarterly report on fraud relating to certain COVID-19 loans. A quorum was not present for the vote, and further consideration of this bill is postponed at this time. H.R. 4667 – Introduced by Rep. Maria Elvira Salazar (R-Fla.), the RECLAIM Taxpayer Funds Act, was also introduced; also failing to advance due to lack of a quorum. The bill would require the SBA to issue guidance for borrowers and lenders on the return of unused Paycheck Protection Program (PPP) funds, and to establish a tracking system for those funds, but is pending further consideration at this time. H.R. 4668 – Another member of the House Small Business Committee, Rep. Marc Molinaro (R-New York), introduced the POST IT Act of 2023, which would require the SBA Office of the National Ombudsman to include links on its website to any guidance for a rule subject to a small entity compliance guide. This bill passed by voice vote, implying unanimous support, and is awaiting further action in Congress. H.R. 4670 – Fellow House Small Business Committee member, Rep. Chrissy Houlahan (D-Penn.) found similar support and passage by voice for the Small Business Contracting Transparency Act of 2023, which would require the SBA to report information regarding women-owned, service-disabled veteran-owned, and HUBZone small businesses to Congress annually. H.R. 5427 – To prohibit individuals convicted of defrauding the Government from receiving any assistance from the Small Business Administration, and for other purposes, Rep. Roger Williams (R-Texas) of the House Small Business Committee, also saw his legislation passed by voice, awaiting additional action in Congress. H.R. 4480 – Lastly, House Small Business Committee member, Rep. Sharice Davids (D-Kan.), saw her legislation, the Successful Entrepreneurship for Reservists and Veterans Act pass by voice. This bill would both require the SBA to report on the veterans interagency task force, and also require the Government Accountability Office (GAO) to report on access to credit for small businesses owned or controlled by veterans, Reservists, or their spouses. RELATED | Senate Says No to CFPB Small-Business Data Collection Rounding out last week, on Dec. 1, the House passed a resolution (S. J. Res. 32; BGOV Bill Summary) disapproving of a rule from the Consumer Financial Protection Bureau (CFPB), which would require small-business lenders to gather borrowers’ demographic data. While the resolution disapproving of the CFPB rule narrowly passed the House by a vote of 221-202 after similarly narrow passage in the Senate (53-44), the White House said President Joe Biden would veto the measure. Neither chamber is expected to garner enough votes to override a veto. The CFPB’s small business lending rule requires banks, fintechs, and other lenders that make more than 100 small-business loans annually to collect race, gender, and other demographic information, similar to data collected for mortgages. Supporters of the measures to block the CFPB’s rule say they are concerned with costs and difficulties of implementing the data collection rule, but the White House maintains its position that the rule is important in promoting transparency and accountability in small-business lending, particularly for its priorities of closing gaps in capital access for minority- and women-owned businesses. Follow NSBA as we continue tracking these bills in Congress.

In conjunction with this quarter’s Board Meeting, NSBA is looking forward to 2024. This week, NSBA convened in Washington, D.C. for its Annual Member Meeting, as well as the final Board Meeting of 2023, where trustees reviewed and laid groundwork for the future of America’s oldest small-business advocacy organization. In addition to approving a number of initiatives related to the roll-out of a strategic plan, a new class of trustees were presented and ratified. Holding leadership positions for the coming year: Chair - Marilyn Wilson Lund, WAV Group | Laguna Beach, Calif. First Vice Chair - Michael Canty, Alloy Precision Molding | Cleveland, Ohio Secretary - Kevin Johnson, NexGen Interactive | Cleveland, Ohio Treasurer - Malcolm Prouty, LeProuty Properties | Austin, Texas Vice Chair for Advocacy - William Belknap, AEONRG | Downington, Penn. Vice Chair for Communications - Joan Myers, Strategic Link Partners | Moncure, N.C. Vice Chair for Membership -  Sanjyot Dunung, Alma Global Knowledge Media | New York, N.Y. Immediate Past Chair Robert Treiber, Boston Engineering Corporation | Waltham, Mass. Following adjournment of the meetings, members of the Board enjoyed a tour of the Capitol, including a visit to the House gallery, where the delegation was able to witness floor proceedings. We’re looking forward to 2024 and continuing to support the nation’s small-business community.

The Credit Card Competition Act (CCCA) is simple common sense for small business.

The law, if implemented, would require millions of Americans to disclose personal information to the federal government indefinitely. FOR IMMEDIATE RELEASE Monday, Nov. 20, 2023 Contact: Molly Day, NSBA​​​​ 202-552-2904 mday@nsba.biz Washington, D.C. – Oral Arguments Begin in Isaac Winkles and National Small Business Association Constitutional Challenge to Congress’s Corporate Transparency Act Huntsville, AL – Today, Nov. 20, at 10:00 a.m., oral arguments in National Small Business Association v. Yellen will begin at the Huntsville United States District Court. The case is a challenge to the constitutionality of the Corporate Transparency Act (CTA) and specifically the law’s beneficial ownershipreporting requirements. The law would require nearly every American who runs or wants to form a corporation or LLC to give the Financial Crimes Enforcement Network (FinCEN)deeply personal information of its owners like date of birth, current address, and an image of their driver’s license. “The CTA has been mired in confusion and ambiguities start to finish. Not only is it bad policy, it is unconstitutional,” said NSBA President and CEO Todd McCracken who will be in attendance for the oral argument. “Americans who are not suspected of doing anything wrong are being asked to provide deeply personal information to a government agency, which is putting the information in a database for criminal law enforcement purposes. These small-business owners will have to pay on average $8,000 in compliance costs in the first year alone. Americans justifiably have little confidence in the federal government’s willingness to secure their personal data, the law calls for the government to share this information with foreign governments.” The oral arguments in the Northern District of Alabama’s Huntsville courthouse focused on challenges to the CTA for violating plaintiff’s First, Fourth, and Fifth Amendment rights while also simply being beyond the scope of Congress’s powers. “Congress, whether or not it has good intentions, is always constrained by the Constitution,” said John Neiman, attorney for the plaintiffs. “Our challenge is trying to get Congress to follow the law and not create an unconstitutional burden on Americans.” Isaac Winkles, the owner of Alabama Property Management, Inc. in Huntsville, along with other local business owners and NSBA members will be in attendance during the oral arguments. Click here to learn more. About NSBA: Celebrating more than 85 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.nsba.biz or follow us at @NSBAAdvocate.