A recent federal court decision has reinstated the requirement for small businesses to report their Beneficial Ownership Information (BOI) to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). This ruling affects over 32 million small businesses across the United States, which must now comply with the Corporate Transparency Act (CTA) by filing their BOI reports by March 21, 2025.

The CTA, effective since January 1, 2024, mandates that these businesses disclose private ownership information to a database accessible by government agencies and foreign governments without needing a subpoena or warrant. The National Federation of Independent Business (NFIB), along with other organizations, had filed lawsuits against this regulation, resulting in a temporary pause on BOI reporting. However, the latest court ruling reversed this pause.

"NFIB is against the unnecessary and intrusive reporting requirements forcing small businesses to share private information," stated an NFIB representative. The organization is actively pursuing efforts to overturn the regulation in federal court and seeking its repeal in Congress.

Despite this setback for NFIB's legal challenge, they continue to urge business owners and stakeholders to voice their opposition to Congress regarding the CTA's requirements. NFIB provides resources on its website at NFIB.com/ProtectPrivacy for those affected.

As the deadline approaches, small businesses are encouraged to ensure compliance with these reporting obligations while continuing advocacy efforts for legislative change.