Small business owners across the U.S. will soon be subject to a 2020 law known as the Corporate Transparency Act that requires corporations and limited liability companies (LLCs) with 20 or fewer full-time employees to file new reports with the Treasury Department’s FinCEN bureau. The reports contain business owners’ personally identifiable information and the law expands FinCEN’s regulatory authority to 30 million small businesses. Small business owners have long raised concerns about this law’s federal reporting requirements and associated privacy concerns.
When NFIB surveyed its membership on this issue, 80% of small business owners opposed Congress requiring small business owners to file paperwork with the Treasury Department each time they form or change ownership of their businesses.
The Financial Crimes Enforcement Network Improvements Act
In a letter to the Treasury Department in February, NFIB recommended nine adjustments to protect small businesses from overreaching regulations proposed, some of which are being addressed in H.R. 7623, the Financial Crimes Enforcement Network Improvements Act. NFIB supports the Financial Crimes Enforcement Network Improvements Act, which would:
- Provide for the appointment of the Director of FinCEN by the President of the United States, by and with the advice and consent of the Senate.
- Establish a special Deputy Inspector General for FinCEN with a substantial priority to help make sure that FinCEN protects the civil liberties and privacy of Americans.
- Establish a Civil Liberties Protection Officer for FinCEN in Treasury’s front office.
- Require transparency in rulemaking from FinCEN.
- Require FinCEN to provide Congress and the public with documents similar to the Freedom of Information Act.
- Require the Director of FinCEN to regularly testify before Congress as well as promptly report to Congress on any unlawful activity by FinCEN employees.
Take action and urge your Member of Congress
to cosponsor H.R. 7623.