NFIB Supports Reintroduction of Legislation to Repeal Beneficial Ownership Reporting for Small Businesses
NFIB Supports Reintroduction of Legislation to Repeal Beneficial Ownership Reporting for Small Businesses
January 15, 2025
Repealing Big Brother Overreach Act would repeal the Corporate Transparency Act
WASHINGTON, D.C. (Jan. 15, 2025) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, supports legislation reintroduced today by Sen. Tommy Tuberville (AL) and Rep. Warren Davidson (OH-08) to repeal the Corporate Transparency Act (CTA). Repealing the CTA will end the burdensome Beneficial Ownership requirements for more than 32 million small businesses and protect their privacy.
“The Corporate Transparency Act is an unconstitutional power grab that targets more than 32 million small businesses,” said Jeff Brabant, NFIB Vice President of Federal Government Relations. “The law mandates small businesses to register in a massive new federal database that state, federal, and international law enforcement can access without a subpoena. Thankfully, a nationwide injunction has temporarily halted this government overreach, but Congress must step up to provide long-term relief to small businesses. NFIB is grateful for Sen. Tuberville and Rep. Davidson’s leadership to repeal the Corporate Transparency Act and urges Congress to eliminate this burdensome and unnecessary small business reporting requirement.”
NFIB opposes the CTA and has been working to block and repeal it in the federal courts and Congress. The rule was originally set to take effect on January 1, 2025, but NFIB’s lawsuit challenging the CTA, Texas Top Cop Shop, Inc., et al. v. Garland, et al., has temporarily halted enforcement. This past December, the U.S. District Court for the Eastern District of Texas granted NFIB’s request for a preliminary injunction, preventing the U.S. Department of Treasury from enforcing the CTA and BOI reporting requirements. On December 23, the U.S. Court of Appeals for the Fifth Circuit blocked that injunction, which allowed the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to enforce the CTA and its BOI reporting requirements. On December 26, the U.S. Court of Appeals for the Fifth Circuit reinstated the nationwide injunction. On December 31, the U.S. Justice Department asked the Supreme Court to stay the injunction.
If not fully repealed or found unconstitutional, more than 32 million small businesses will once again be subjected to this harmful statute, including the nearly 300,000 NFIB member businesses represented in the lawsuit Texas Top Cop Shop, Inc., et al. v. Garland, et al. Yesterday, members of Congress joined NFIB in submitting an amicus brief to the U.S. Supreme Court in opposition to the U.S. Justice Department’s request to stay the injunction.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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