Tommy Tuberville
01/15/2025 | Press release | Distributed by Public on 01/15/2025 15:11
Tuberville Reintroduces Legislation to Repeal Corporate Transparency Act, Protect Small Businesses
Non-compliance with CTA regulations could cost business owners up to $10,000 per violation and/or jail time
WASHINGTON - Today, U.S. Senator Tommy Tuberville (R-AL) reintroduced the Repealing Big Brother Overreach Act, his legislation to overturn the disastrous Corporate Transparency Act (CTA) and protect small business owners. The CTA was signed into law as part of the Fiscal Year 2021 National Defense Authorization Act (NDAA) and requires individuals with an ownership interest in a limited liability company (LLC) to disclose personal data with the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN). Failure to comply could result in up to two years of jail time and a $10,000 fine per violation.
CTA requirements were originally slated to go into effect on January 1 of this year, but implementation is currently paused while the legality of the CTA's requirements is being argued in the federal courts. The U.S. Court of Appeals for the Fifth Circuit upheld a nationwide injunction on CTA implementation, but the Biden Justice Department has appealed the decision to the Supreme Court, which the court has agreed to hear.
"Small businesses are the backbone of our economy," said Senator Tuberville. "Small business owners are the ultimate job creators, yet they have been crushed by four years of Joe Biden's disastrous economic policies. They need less government regulation, not more. The CTA requirements that dictate they must share personal data or pay a fine and spend time in jail does nothing but stifle increased economic growth. This unprecedented intrusion into personal privacy is something you'd expect in Communist China, but not in the United States of America. I'm thankful that the Supreme Court is now deciding the legality of the CTA requirements, but we need to ensure that our business owners never have to worry about this again. I am proud to be partnering with Congressman Warren Davidson in reintroducing this legislation to repeal the Corporate Transparency Act and cut bureaucratic red tape for our small business owners."
Congressman Warren Davidson (R-OH-08) reintroduced companion legislation in the U.S. House of Representatives.
"The Financial Crimes Enforcement Network (FinCEN) infringes American small business owners' privacy rights by forcing them to disclose sensitive information to the government. The CTA is a disaster for small businesses and must be repealed immediately," said Rep. Davidson. "That is why I am re-introducing this legislation in the 119th Congress, and I urge my colleagues to join me in passing it."
The Repealing Big Brother Overreach Act is supported by more than 100 trade organizations, including the National Federation of Independent Business (NFIB) and Americans for Tax Reform. The Wall Street Journal reported on Senator Tuberville and Congressman Davidson's efforts earlier today.
MORE:
Tuberville Introduces Legislation to Repeal Corporate Transparency Act, Protect Small Businesses
Tuberville Slams Corporate Transparency Act, Previews Legislation to Protect Small Businesses
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans' Affairs, HELP, and Aging Committees.
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