A US federal appeals court has put the nation’s Corporate Transparency Act (CTA) reporting requirements on hold, providing relief to 32 million small businesses. The law, aimed at combating money laundering, requires companies to disclose beneficial ownership information, but its constitutionality is being challenged in court.
The CTA was set to take effect after a previous Fifth Circuit order allowed the government to begin enforcing the law, but the appeals court reversed course, temporarily halting compliance. This decision applies to most businesses, including nearly 300,000 NFIB member businesses.
NFIB, which represents small and independent businesses nationwide, is calling for Congress to repeal the law, citing concerns over its burden on small business owners. The organization supports the Repealing Big Brother Overreach Act, legislation that would permanently relieve small businesses of these reporting requirements.
Small business owners are encouraged to contact their lawmakers in the U.S. House and Senate to urge them to fully repeal the CTA. NFIB is urging swift action to provide certainty for small businesses and avoid further back-and-forth in the courts.
Source: https://www.nfib.com/news-article/beneficial-ownership-reporting-on-indefinite-hold