H.R. 7963 will require the Treasury to improve small-business communications on reporting.
Following NSBA’s small-business victory over the Corporate Transparency Act (CTA) in federal court earlier this year, similar lawsuits were introduced against the CTA across the nation.
In addition to these corresponding lawsuits, NSBA is pleased to report progress on legislative options to address the CTA, including action in the House to reduce cumbersome regulatory burdens for small-business owners.
The Small Business Red Tape Relief Act (H.R.7963) was introduced by Representatives Zach Nunn (R-03, Iowa) and Henry Cuellar (D-28, Texas) to hold the U.S. Treasury accountable for educating Main Street businesses on reporting responsibilities.
According to NSBA’s survey on the CTA, small-business owners’ top concerns over the CTA are related to a lack of clarity on filing requirements and beneficial owner information (BOI) definitions. H.R. 7963 would hold the Treasury’s Financial Crimes Enforcement Network (FinCEN) accountable to ensure small businesses are not responsible for requirements they have not been appropriately informed of.
RELATED | NSBA Small-Business Survey on the CTA
NSBA President and CEO Todd McCracken shared the following on the legislation:
“America’s more than 33 million small businesses are the backbone of our economy from the smallest towns to the biggest cities, employing roughly half of all private sector workers. An estimated 5.5 million new entities are formed every year, meaning that this year alone, millions of BOI reports will have to be filed. The last thing an emerging entrepreneur needs is a bureaucratic headache. If the government threatens punitive enforcement action and insists on collecting personal data on millions of Americans, we should demand transparency. We are heartened to see Congress is taking this issue seriously, and we urge legislators to support Representative Nunn’s Small Business Red Tape Relief Act of 2024.”
Follow NSBA as we continue tracking efforts to stem cumbersome reporting requirements for small-business owners, including litigation and legislation related to the CTA.