NCPA recently joined various non-pharmacy trade organizations in co-signing a letter to the House and Senate that calls for the repeal of the Corporate Transparency Act (CTA). Specifically, the letter supports the Repealing Big Brother Overreach Act, which would seek to repeal the CTA in its entirety. Under the CTA, small businesses (including pharmacies) that have 20 or fewer full-time employees that do not otherwise meet an exemption were required to report a “beneficial ownership information report” (otherwise known as a BOI Report) with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) beginning January 1 of this year. For NCPA’s member summary of the CTA, click here.
A U.S. District Court judge has ruled that the CTA is an unconstitutional act by Congress in that it “exceeds the Constitution’s limits on the legislative branch and lacks a sufficient nexus to any enumerated power to be a necessary or proper means of achieving Congress’ policy goals.” The Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal.
While this litigation is ongoing, FinCEN will continue to implement the CTA, while complying with the court’s order. Other than those subject to the court’s injunction, including plaintiffs Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association, all other reporting companies are still required to comply with the law and file beneficial ownership reports as provided in FinCEN’s regulations.
