Here’s a bit of good news on the Corporate Transparency Act front. More than three dozen lawmakers have sent a letter to the Financial Crimes Enforcement Network requesting a one-year delay of the CTA’s fast-approaching reporting deadline.
The effort was led by Congresswoman Lisa McClain (R-MI) and cites ongoing concerns over the lack of awareness among affected businesses when it comes to their new compliance obligations, the confusion surrounding several ongoing legal challenges, and other critical issues. The letter was signed by 44 House members, including Majority Whip Tom Emmer (R-MN) and Financial Services Committee Vice Chair French Hill (R-AR).
With time running out before the year-end reporting deadline, the potential for a delay comes as welcome news to the 33 million entities who would directly benefit from the relief. It’s also clear from our discussions with legislators and staff that the renewed focus on the CTA is no coincidence. The more small business owners learn about the new requirements, the louder their voices become in asking elected officials for help.
The call in the letter for a 1-year delay was echoed by business advocates on “X”, including numerous trades and Carol Roth:
This dynamic also helps explain recent legislative efforts to implement either a delay or the wholesale repeal of the CTA. For example, the Protect Small Business and Prevent Illicit Financial Activity Act (H.R. 5119) passed the House in a near-unanimous vote last year but has remained stalled in the Senate over opposition from Senate Banking Committee Chairman Sherrod Brown (D-OH). The bill’s sponsor, Congressman Zach Nunn (R-IA) also recently introduced a similar delay bill (H.R. 9278) which enjoys support from both sides of the aisle.
Meanwhile, Senators James Lankford (R-OK) and Tim Scott (R-SC) introduced amendments to this year’s National Defense Authorization Act (NDAA), the annual spending package that is one of this year’s few remaining must-pass bills. Finally, the bicameral Repealing Big Brother Overreach Act (H.R. 8147 / S. 4297) remains pending in both chambers, with support growing by the week.
The bottom line is that, even with two months to go before the year-end filing deadline, a delay attached to the NDAA, the government funding bill, or another legislative vehicle is still possible. So a big thank you to Congresswoman McClain and the other signatories and a general call to the business community – now is the time to weigh in with your lawmakers. If we are going to succeed in delaying this reporting deadline, Main Street needs to be heard!