Rep. Warren Davidson (R-OH) has reintroduced legislation which, if signed into law, would enact a full repeal of the Corporate Transparency Act. H.R.425 - To repeal the Corporate Transparency Act, has already received 68 cosponsors and a Senate companion bill, S.100, has been introduced by Sen. Tommy Tuberville (R-AL) which currently has 24 cosponsors.
“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 The CTA is a disaster for small businesses and must be repealed immediately,” said Rep.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 in a statement. Earlier this month, NLBMDA cosigned a letter supporting efforts to reintroduce the legislation in the new Congress. “NLBMDA applauds lawmakers for taking this significant first step in achieving a full repeal of the Corporate Transparency Act,” said NLBMDA President & CEO Jonathan Paine. “Over the next few months NLBMDA will work closely alongside our coalition partners to advocate for passage of this legislation.”
The reintroduction of this legislation occurs amid an ongoing court battle between small businesses and the U.S. Department of Justice over the constitutionality of the CTA. As NLBMDA previously reported, a temporary nationwide injunction was reinstated on December 26th, once again halting the enforcement of a January 1, 2025 reporting deadline to submit Beneficial Ownership Information (BOI) reports with FinCEN.
The U.S. Government has, as expected, appealed the December 26th Fifth Circuit ruling to the U.S. Supreme Court. Justice Alito is assigned to consider the appeal and the court has not yet indicated when a decision is expected.
On Tuesday, 13 House Republicans alongside Senator Tillis (R-NC) submitted an amicus brief to the U.S. Supreme Court recommending that the CTA nationwide injunction remain in place. Over a dozen parties have submitted similar briefs to the Supreme Court expressing support for the temporary injunction.
NLBMDA is closely monitoring and will provide updates as needed. For questions, please contact NLBMDA’s Government Affairs Coordinator, Matthew Delaney at mdelaney@dealer.org.
