January 31, 2025
Small businesses still do not have to report
What it means: Although the Supreme Court granted the government’s motion to reinstate beneficial ownership reporting, another federal judge blocked the rule. While this litigation is ongoing businesses are not currently required to file beneficial ownership information with FinCEN. Meanwhile, the U.S. Senate and House have reintroduced legislation to permanently relieve small businesses of the reporting requirements.
Our take: “[The Supreme Court’s] decision is a setback for small business. Hopefully, Treasury recognizes the chaos that will ensue by requiring 32 million small businesses to imminently file their BOI information while the constitutionality of the reporting requirements is determined,” said Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center.”
Take Action: Urge Congress to resolve the issue and provide permanent relief to small businesses by passing the Repealing Big Brother Overreach Act.
The beneficial ownership reporting requirement remains on hold, but on Jan. 23 the U.S. Supreme Court decided to grant the government’s request and reinstated the Corporate Transparency Act (CTA). Small businesses are not currently required to file beneficial ownership information with FinCEN due to ongoing litigation.
Repealing the CTA will end the burdensome beneficial ownership requirements for more than 32 million small businesses and protect their privacy. Sen. Tommy Tuberville (AL) and Rep. Warren Davidson (OH-08) reintroduced legislation to repeal the CTA on Jan. 15. NFIB led 65 trade associations in sending a letter in strong support of their legislation.
This is a step in the right direction for small business amidst the disappointing Supreme Court decision. NFIB opposes the CTA and is working to block and repeal it in the federal courts and Congress. NFIB’s lawsuit is still ongoing and the lower federal courts must still decide the merits of the CTA’s constitutionality. In the meantime, Congress can pass the legislation that would repeal the CTA and permanently relieve small businesses of the beneficial ownership requirements.
NFIB’s press release provides further details, as well as resources on the website with up-to-date information. Take Action: Urge Congress to resolve the issue and provide permanent relief to small businesses by passing the Repealing Big Brother Overreach Act,.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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