The Corporate Transparency Act (CTA) was signed into law in December 2020 and is just beginning to go into effect. This law will require ONLY certain businesses with fewer than 20 employees to disclose owners’ information to the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).

While the intent of the law was to stem money laundering, the CTA is not only bad policy, it is unconstitutional. Failure of a small business to comply—intentional or not—could result in up to $10,000 in fines and up to two years in prison.

NSBA has prevailed in our lawsuit against Treasury over the implementing regulations of the CTA, however only NSBA members as of March 1, 2024, are currently exempt. An act of Congress to repeal the law remains the best way to ensure this bad policy doesn’t see the light of day. Thankfully, Rep. Warren Davidson recently introduced a bill to do just that - H.R.8147.

Please take a moment TODAY to urge your lawmakers to support every effort to delay and ultimately repeal this harmful law, including Representative Davidson's bill.