The Brewers Association has joined other trade associations in signing a letter supporting the repeal of the Corporate Transparency Act (CTA), which would eliminate the burdensome beneficial ownership reporting requirement for small and independent breweries. The CTA, set to go into effect in January 2025, requires businesses to report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).
The BA’s opposition to the CTA is centered around its concerns about upfront costs to small producers and duplicative regulation. According to FinCEN estimates, filing an initial beneficial ownership report can cost between $85.14 and $2,614.87, while updated reports could range from $37.84 to $560.81.
The BA argues that the CTA creates redundant requirements and imposes harsh penalties, including civil penalties of up to $591 per day for ongoing violations and criminal penalties of up to two years in prison and fines of up to $10,000. The organization recognizes that breweries are among the most heavily regulated businesses in the US and is committed to advocating on behalf of its members to protect them from unnecessary regulatory burdens.
The repeal of the CTA would eliminate the burden of these reporting requirements for small and independent breweries, alleviating concerns about financial costs and excessive regulation.
Source: https://www.brewersassociation.org/government-affairs-updates/brewers-association-supports-repeal-of-corporate-transparency-act