NFIB urges congressional action against beneficial ownership reporting rules

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Brad Close National Federation of Independent Business | Official Website

NFIB urges congressional action against beneficial ownership reporting rules

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NFIB President Brad Close appeared on SiriusXM’s The David Webb Show to address concerns about Beneficial Ownership Information (BOI) reporting requirements, which he described as unconstitutional and invasive for small businesses. Close called on Congress to repeal the regulation, arguing that it imposes unnecessary burdens on business owners.

“The government thought it would be great to threaten small business owners with up to two years in prison and up to $10,000 of fines if they don’t submit basic paperwork to the government. So, it is totally outrageous. The Trump administration has been great. They looked at this as soon as they came in. We had some really good conversations with them, gave them some stories and told them what this impact was. They saw this as a huge regulatory burden on the very small businesses they were trying to help all across the country. So, the president pretty quickly changed the rule to make this only apply to foreign-based businesses, to exempt any U.S. businesses," said Close.

He continued: “So, now what we want to do is we want to take the president’s actions, really make it permanent, but that requires Congress. So, we want Congress to repeal the law and destroy all the data because millions of small business owners already sent in their data under the threat that they would face fines and jail earlier this year, under the previous administration. So, Congress needs to finish the work that the president’s already done.”

The National Federation of Independent Business (NFIB) has opposed BOI reporting regulations for over six years through efforts in Congress, executive agencies, and federal courts. The organization warns that if these requirements are not fully repealed, 32 million small businesses could again face mandates considered by NFIB as unnecessary and unconstitutional. Noncompliance could result in criminal penalties including up to two years in prison and civil fines up to $10,000.

NFIB describes itself as a nonprofit and nonpartisan group representing America’s small and independent business owners for more than 80 years across all 50 states.

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