NFIB Members Call Out Burdensome Corporate Transparency Act

Date: October 01, 2019

According to NFIB Member and Board Chair Steve Schramm, the legislation is a “bad idea” and many small business owners are in agreement.

In an op-ed for The Cincinnati Enquirer NFIB Member and Board Chair Steve Schramm expressed small business’ concerns over the Corporate Transparency Act (CTA). 

The proposed CTA legislation requires that nearly every small business with fewer than 20 employees collect information and file reports with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) on all owners of the business and update the information annually. Failure to comply with this legislation would be a federal crime and businesses could face steep civil fines of up to $10,000, and even criminal penalties of up to three years in prison. 

“There’s a reason that politicians gave the bill such a friendly name,” said Schramm. “Few people are opposed to corporate transparency, and no member of Congress wants to be seen opposing such sensible things. But if you look past the name at the substance of the bill, you’ll find a bill that has nothing to do with corporations or transparency. What you will find is legislation that 80 [percent] of small businesses say is a bad idea.”

NFIB member Dave Boothe also wrote a letter to the editor in The Toledo Blade, explaining how the CTA will be a burden to small businesses. 

“I am already burdened by compliance reporting to the IRS, state, and municipal tax authorities, worker’s and unemployment compensation, the bank who lends me money, OSHA, EPA, unions, insurance providers, and the data collection groups, all of which I pay for. This is another bureaucratic move to make the lives of the business owner more miserable through mandate and regulation.”

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