AGC co-signed a letter to senators asking them to support an amendment which would delay implementation of the Corporate Transparency Act by one year.

What is the latest? This week, AGC co-signed a letter to Senators Sherrod Brown (D-Ohio) and Tim Scott (R-SC) asking them to support an amendment which would delay implementation of the Corporate Transparency Act by one year.

When did the CTA pass and what is it again? Enacted in 2020 as part of the National Defense Authorization Act, the Corporate Transparency Act, which AGC opposed at the time, would require anyone who has "substantial control" of most legal entities with fewer than 20 employees or $5 million in revenue to submit "beneficial ownership information" to the Financial Crimes Enforcement Network (FinCEN) as of January 1 this year. Even though FinCEN has accepted submissions since the beginning of 2024, only an estimated 10 percent of affected entities have complied. It is clear that FinCEN needs more time to educate the regulated entities about their responsibilities, especially in light of a recent court decision that found the law to be unconstitutional.

What else has AGC done on this? AGC filed a "friend of the court" brief in support of this litigation earlier this year, and has hosted two educational webinars with FinCEN and a law firm specializing in CTA compliance, earlier this year. For additional information, see here.

If you have any questions about the Corporate Transparency Act, please contact Matthew Turkstra at (202) 547-4733.