The National Federation of Independent Business (NFIB) has responded to the Financial Crimes Enforcement Network's (FinCEN) recent decision to destroy data collected from U.S. small business owners under the Corporate Transparency Act’s Beneficial Ownership Information (BOI) reporting rule. The organization welcomed FinCEN’s commitment to issue a final rule by the end of the year.
“FinCEN’s announcement that they will destroy the unconstitutionally collected BOI data of America’s small businesses and issue a final rule by the end of the year is a major win for Main Street. NFIB has strongly advocated for FinCEN to provide long-term relief by expediting the final rule, and to destroy the BOI data of small businesses, as they have now promised to do. We thank Senator Jim Banks, Congressman Warren Davidson, and members of Congress for their leadership to protect America’s small businesses,” said NFIB President Brad Close.
The announcement from FinCEN followed Congressional action led by Senator Jim Banks, Congressman Warren Davidson, and 85 other lawmakers who urged FinCEN to delete previously submitted data and move quickly on a final rule exempting U.S. small businesses from BOI reporting requirements.
Earlier this year, NFIB began advocating for Congress not only to repeal the BOI law but also to ensure destruction of all related data already submitted by small business owners. The group launched an issue campaign with radio, billboard, and digital ads in several states urging lawmakers to make permanent President Trump’s order exempting American small businesses from BOI reporting rules, fully repeal the law, and require deletion of all previously collected information.
NFIB has opposed Beneficial Ownership Information reporting regulations for over six years across legislative, executive, and judicial branches. Without further Congressional action to repeal or provide exemptions for U.S. businesses, about 32 million small businesses could be subject again to these requirements. Noncompliance could result in criminal penalties including up to two years in federal prison and fines up to $10,000.
