Over 120 trade associations today called on the Treasury Department to offer Main Street some relief and certainty by delaying the CTA through at least the end of this year. As the letter sent to Secretary Scott Bessent reads:
Despite massive public awareness campaigns by the groups represented here, as of December 1, 2024 – just one month before a year-end deadline – FinCEN had received less than 30 percent of the required filings. Had the courts not intervened, tens of millions of business owners would have been out of compliance and at risk of felony prosecutions.
The myriad of legal challenges and court rulings has added to the confusion. A nationwide injunction issued against the CTA in December was subsequently overturned, reimplemented, and overturned again, all in a matter of weeks. An Alabama court ruling that found the CTA unconstitutional is still pending appeal in the Eleventh Circuit, while at least ten other legal challenges are still waiting to be heard.
Still another nationwide order to pause mandatory filing – issued by the District Court for the Eastern District of Texas in the case of Smith v Treasury – remains in place. While we appreciate FinCEN’s decision to respect that order and pause the collection of BOI, the relief provided through that regulatory action is contingent upon the order remaining in place.
Given the volatile legal landscape and the vast number of businesses targeted by the CTA’s unprecedented reporting mandates, we urge the Administration to issue new guidance to delay filing until at least the end of the year and ensure the courts have time to make a final determination regarding the CTA’s constitutionality. [Emphasis added.]
Our ultimate goal is to repeal this ill-conceived law for good, but in the interim Main Street needs certainty that, should courts reverse themselves, we are not suddenly on the hook for massive fines and criminal penalties. Fortunately, the current Administration is tuned into this challenge, and we look forward to working with them to stop this ill-conceived law.