East Idaho Times

U.S. Senators Mike Crapo, Jim Risch, and Rick Scott, along with U.S. House of Representatives Financial Services Chairman Patrick McHenry and 76 of their colleagues, have written a letter to U.S. Treasury Secretary Janet Yellen and Director of the Financial Crimes Enforcement Network (FinCEN) Andrea Gacki, urging the Biden administration to delay the implementation of new reporting requirements for small businesses.

The letter expresses concerns about the implementation of the beneficial ownership reporting requirements under the Corporate Transparency Act (CTA), stating that the law defines covered entities as those having 20 or fewer employees and under $5 million in revenue, which includes nearly every small business in America.

The elected officials highlight the lack of awareness and education among small business owners and stakeholders regarding their new obligations under the CTA. They emphasize the need for FinCEN to educate and inform small businesses before the law goes into effect. The letter also stresses that FinCEN has yet to finalize the two final BOI rulemakings that are critical to protecting small businesses' personal information.

Therefore, the senators and representatives request a minimum one-year delay in the January 1, 2024, effective date for all beneficial ownership reporting requirements until FinCEN has finalized all outstanding rulemakings. They believe that this delay will provide FinCEN and the business community with more time to educate small business owners about their new obligations and allow FinCEN to review and improve the new rules.

The letter has garnered support from a wide range of organizations, including the National Federation of Independent Business (NFIB), Associated General Contractors of America, American Rental Association, and the Society of Collision Repair Specialists, among many others.

The concerns raised by Senators Crapo, Risch, and Scott, along with their colleagues and the supported organizations, highlight the potential impact of the new reporting requirements on small businesses. Delaying the implementation of these requirements would allow for better preparation and understanding among small business owners, ensuring their compliance with the law without unnecessary burdens.

Small businesses play a crucial role in the U.S. economy, and it is essential to provide them with the necessary resources and support to navigate regulatory changes effectively. The letter to Secretary Yellen and Director Gacki emphasizes the need for a delay in the implementation of the new reporting requirements to ensure that small businesses are not unduly burdened by red tape.

The full letter can be found here.

To find out more, go to this link: https://www.crapo.senate.gov/media/newsreleases/crapo-risch-scott-demand-biden-admin-delay-red-tape-rule-detrimental-to-small-businesses