WASHINGTON, D.C. (Dec. 17, 2024) – Today, the Wall Street Journal Editorial Board published an op-ed discussing the impact of the Corporate Transparency Act’s (CTA) burdensome Beneficial Ownership Information reporting requirements and its impact on small businesses. The Editorial Board urges Congress to repeal the CTA to give small business owners relief from this burdensome rule.

The Editorial Board writes:

“In 2020 Congress tucked the CTA into the National Defense Authorization Act in the last days of the Trump Administration and it passed over Mr. Trump’s veto. The intent was to combat money launderers and drug dealers. But the result, says the National Federation of Independent Business, is a bill that imposes another compliance burden, makes confidential business data less secure, and does little to deter real criminals.

“The law took effect last Jan. 1. It requires corporations or limited liability companies of fewer than 20 employees and $5 million or less in revenue to disclose details about their beneficial owners to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Failure to comply can result in up to two years in prison and a $10,000 fine.”

“What’s next? The Biden Administration has asked the Fifth Circuit Court of Appeals for a stay of Judge Mazzant’s injunction. It also wants the appellate court to rule by Dec. 27, so that businesses would still have to meet the reporting deadline of Dec. 31.”

“But Congress needn’t wait for courts to remove this looming burden from millions of small businesses. This is the kind of unnecessary regulation that Republicans campaigned to stop. A one-year delay is already under consideration as an amendment to the year-end spending bill being debated in Congress. Congress can adopt this amendment, deliver relief to small business, and give the courts the time they need to resolve this mess.”

In a lawsuit filed by NFIB, a federal court issued  a preliminary injunction that blocks the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) from enforcing the CTA’s BOI reporting requirements. NFIB supports the Repealing Big Brother Overreach Act, legislation that would repeal the CTA and permanently relieve small businesses of the beneficial ownership requirements.

Read the full op-ed here: https://www.wsj.com/opinion/corporate-transparency-act-judge-amos-mazzant-small-business-donald-trump-df6162f0?mod=opinion_lead_pos4