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 …

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Notable Developments

• Request for Signatories: Member letter to FinCEN
• FinCEN says tech issues are your fault
• Updated FAQ limits CTA exemption
• HOAs have their day in court
• TD Bank case shows the current system works

Legislative Update

Congresswoman Lisa McClain is circulating a letter (linked here) requesting that FinCEN delay the CTA’s year-end reporting deadline and is requesting support from additional offices. Word is Financial Services Committee member French Hill (R-AR) has signed on.

For staffers whose bosses would like to sign as well, please contact the Congresswoman’s LD Erik Kinney at Erik.kinney@mail.house.gov. To ensure we have a strong show …

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As a followup to yesterday’s CTA Watch newsletter we wanted to highlight two notable items, starting with a great thread by our friend Liam Donovan from the Associated Builders and Contractors. Liam breaks down the history of the CTA, the statute’s underlying flaws, and where things currently stand:

Among his other points, Liam does an excellent job of explaining just how confounding the Senate’s failure to act is here:

So if the dysfunctional, do-nothing House passed a CTA relief bill with the support of 99.8% of the chamber almost a year …

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Notable Developments

1. Weak compliance numbers heighten concern
2. Appeals court hears oral arguments
3. Full court press in Ohio
4. CTA is not a tax enforcement exercise

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Regulatory Update

New filing data from FinCEN is out and it paints a bleak picture when it comes to nationwide compliance rates. As the linked data shows, the vast majority of businesses required to file under the CTA have not done so – despite just three months to go before the year-end filing deadline – meaning millions of small business owners and their employees will become de facto felons come that start of 2025.

Also worth …

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Notable Developments

• Main Street backs latest delay effort
• CTA gets high profile callout
• FinCEN issues updated guidance
• All-cash homebuyers get BOI treatment

Legislative Update

Following Congressman Zach Nunn’s (R-IA) introduction of the Protect Small Businesses from Excessive Paperwork Act (H.R. 9278) – legislation which would delay the CTA’s reporting requirements by one year – S-Corp joined with more than 150 trade associations to support the bill.

As our post notes, The Nunn bill is in keeping with legislation (H.R. 5119) passed by the House last year in a near-unanimous vote of 420-1. Despite that overwhelming show of support, H.R. 5119 …

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