NCPA joined various trade groups in sending a letter to U.S. House of Representatives Speaker Mike Johnson (R-LA) requesting a delay on the Corporate Transparency Act’s year-end compliance deadline. Specifically, the organizations asked Johnson to bring H.R. 9278, legislation which would delay the deadline by one year, to the House floor for a vote. To read the letter, click here.
The CTA requires non-exempt small businesses with 20 or fewer full-time employees (including pharmacies) to report a “beneficial ownership information report” with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) beginning Jan. 1, 2025.
However, a U.S. District Court judge found the CTA unconstitutional and enjoined the law, holding it exceeds the Constitution’s limits on the legislative branch. The Department of Justice has appealed the case.
FinCEN will continue to implement the CTA while the litigation is ongoing, while also complying with the court’s order. All reporting companies are still required to comply with the CTA except those covered by the injunction, a group that includes members of the National Small Business Association. For NCPA’s member summary of the CTA, click here.
