AGC of America and its business allies call on Congress to enact legislation delaying implementation of a new law requiring many small businesses to report beneficial ownership information.
On November 16, AGC of America, along with 70 other trade associations allies, called on Congress to enact legislation delaying implementation of the Corporate Transparency Act (CTA) by one year. Enacted in 2021, the CTA will require most small businesses in America with 20 or fewer employees and under $5 million in revenue, to report “beneficial ownership information,” to the Financial Crimes Enforcement Network (FinCEN) beginning in 2024. Amongst the information to be collected by FinCEN will be the beneficial owners’ personal identification information, such as a copy of their drivers license or passport, Social Security Number or Taxpayer Identification Number, and physical address.
While FinCEN has proposed and finalized some rules related to the CTA, many questions still remain, such as the precise definition of “beneficial owner,” which law enforcement agencies will be able to access the database, and how easily will they be able to access it, and many others. Additionally, most covered entities remain unaware of their reporting responsibilities going into 2024. While AGC opposed enactment of the CTA, additional time is needed to better inform covered entities about if and how they will have to comply with the law.
While AGC is hopeful that Congress and/or FinCEN will delay implementation of the law at least one year, the association will host a webinar in early 2024 with additional information about compliance.
If you have any questions, please contact Matthew Turkstra at [email protected], or (202) 547-4733.
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