NSBA applauds Rep. Nunn and the supporters of his bill to reform the Corporate Transparency Act.
Recently, Rep. Zach Nunn (R-Iowa) introduced a bill to protect small business from excessive paperwork, with bipartisan cosponsors, Reps. Yadira Caraveo (D-Colo.), French Hill (R-Ark.), and Sharice Davids (D-Kan.) The bill would extend CTA filing deadlines to Dec. 31, 2025, as well as enact small-business education and agency oversight accountability programs related to the CTA.
In his announcement on the legislation, Rep. Nunn explained how current federal requirements, like Beneficial Ownership Information (BOI) reports required to be disclosed under the Corporate Transparency Act (CTA), harm small business.
Rep. Nunn further pointed to information on small business and the CTA from NSBA President and CEO Todd McCracken, including how “(m)any, if not most small companies have no idea they need to file,” additionally highlighting concerns for increasing costs of legal and accounting resources to ensure compliance with this opaque law.
Under the current deadlines of the CTA, small-business owners who formed their enterprise before Jan. 1, 2024, are required to submit their BOI reports before Jan. 1, 2025, and small-business owners starting their enterprise in 2024 are required to submit their BOI reports within 90 days of formation.
In March 2024, a Federal Judge ruled in favor of NSBA in its lawsuit against the U.S. Department of the Treasury and its Financial Crimes Enforcement Network (FinCEN) for their enactment of the CTA.
Finding the CTA unconstitutional in its current form, NSBA members as of March 1, 2024, may currently be exempt from reporting requirements compelled by the CTA.
Additional litigation is pending on this ruling, and additional information on the appeal from the Treasury and FinCEN can be found here.
Read the full text of the bill here, and follow NSBA as we continue supporting productive options to repeal or replace the CTA in our pursuit to protect small business.
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