January 14, 2025
NFIB battles in federal courts to keep the indefinite hold on reporting requirements
What it means: As of this update, small businesses are not required to comply with the beneficial ownership reporting requirements. The U.S. Supreme Court is currently deciding whether the indefinite hold secured by NFIB’s lawsuit will remain in place.
Our take: “The Fifth Circuit’s reinstatement of the nationwide injunction is a welcome sigh of relief for small businesses. It also provides Main Streets across the country with a reprieve from this harmful mandate while our lawsuit proceeds,” said Rob Smith, Senior Attorney of the NFIB Small Business Legal Center.
Take Action: Congress can resolve the issue by passing the Repealing Big Brother Overreach Act. Urge Congress to provide permanent relief to small businesses by eliminating this burdensome mandate.
Over 32 million small businesses are facing chaos and confusion because of the back and forth in the courts over the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting requirements. The U.S. Supreme Court will now determine if the current hold on BOI remains in place.
As of now, businesses are not required to comply with the BOI reporting requirements. However, the federal government filed an emergency request with the U.S. Supreme Court that would again require small businesses to comply with the BOI reporting requirements. NFIB filed what is called the “Response in Opposition,” arguing that the district court correctly determined the BOI requirements were likely unconstitutional and that it was appropriate to prevent the U.S. Department of Treasury from enforcing them.
If the U.S. Supreme Court decides in favor of NFIB, the hold will remain until the Fifth Circuit rules on the government’s entire appeal. If the U.S. Supreme Court agrees with the federal government, the BOI requirements are likely to be enforced.
Congress can resolve the issue permanently by passing the Repealing Big Brother Overreach Act. Urge Congress to provide permanent relief to small businesses.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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