The Supreme Court recently granted the government's motion to reinstate beneficial ownership reporting under the Corporate Transparency Act (CTA). However, a federal judge has blocked the rule, leaving small businesses currently exempt from filing beneficial ownership information with FinCEN due to ongoing litigation. The U.S. Senate and House have reintroduced legislation aimed at permanently relieving small businesses of these reporting requirements.
Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center, expressed concern over the Supreme Court's decision. "Hopefully, Treasury recognizes the chaos that will ensue by requiring 32 million small businesses to imminently file their BOI information while the constitutionality of the reporting requirements is determined," she stated.
On January 23, despite the Supreme Court's decision to reinstate the CTA, litigation continues to keep beneficial ownership reporting on hold. Sen. Tommy Tuberville (AL) and Rep. Warren Davidson (OH-08) reintroduced legislation on January 15 to repeal the CTA. This effort is supported by NFIB and 60 trade associations who have sent a letter backing this legislative move.
NFIB remains opposed to the CTA and is actively working in federal courts and Congress to block and repeal it. Their lawsuit challenging the constitutionality of the CTA is still pending in lower federal courts. Meanwhile, NFIB encourages Congress to pass legislation that would permanently relieve small businesses from these burdensome requirements.
NFIB’s press release provides further details along with resources available on their website for up-to-date information.
