WASHINGTON D.C. – Rep. Warren Davidson (R-OH) introduced the Repealing Big Brother Overreach Act today alongside 11 other House colleagues and support from Sen. Tommy Tuberville (R-AL). This legislation repeals the Corporate Transparency Act of 2021 (CTA) and provides American business owners, specifically small business owners, relief from burdensome reporting requirements and excessive penalties.
“The Financial Crimes Enforcement Network (FinCEN) is violating the personal privacy of American business owners by forcing them to disclose sensitive information. The Corporate Transparency Act must be repealed," said Rep. Warren Davidson (R-OH). "Congress must ensure that the federal government fits within the Constitution. That's why I'm introducing this legislation and asking my colleagues to join me to pass it.”
“The Corporate Transparency is one of the largest, most burdensome, and intrusive pieces of legislation affecting the small business economy in generations. This Act singles out and subjects small business owners to civil and criminal penalties for simple paperwork violations, and allows state, federal, and international law enforcement, nearly unfettered access to a database containing the private and sometimes confidential information of millions of small business owners. This Act is broken beyond repair, and NFIB applauds Senator Tuberville and Congressman Davidson for introducing legislation to repeal it.” said Jeff Brabant, Vice-President of Federal Government Relations at NFIB.
Background:
“The Financial Crimes Enforcement Network (FinCEN) is violating the personal privacy of American business owners by forcing them to disclose sensitive information. The Corporate Transparency Act must be repealed," said Rep. Warren Davidson (R-OH). "Congress must ensure that the federal government fits within the Constitution. That's why I'm introducing this legislation and asking my colleagues to join me to pass it.”
“The Corporate Transparency Act is big-government overreach at its worse. The Biden Treasury Department is attempting to create a database on every American business owner. Failure to register by the end of the year could land you in jail. This unprecedented intrusion into personal privacy must be stopped. You’d expect this sort of thing in Communist China but not in the United States of America. I am proud to be partnering with Congressman Warren Davidson in introducing a bill to repeal the Corporate Transparency Act.“ said Sen. Tommy Tuberville (R-AL).
Background:
- A Federation of Independent Business (NFIB) national survey found that 90 percent of respondents were entirely unfamiliar with these reporting requirements.
- The CTA has civil and criminal penalties of up to $10,000 and two years of jail time for failure to comply.
- Financial Crimes Enforcement Network (FinCEN) has yet to finalize the two final beneficial ownership information (BOI) rulemakings that are critical to protecting small businesses’ personal information. These include the “Access Rule,” and the “Customer Due Diligence Rule”.
- The Access Rule specifies the parameters around which the database can be accessed, the purposes for which the information can be used, and how the highly sensitive information will be protected.
- The Customer Due Diligence Rule is critical to make sure BOI would not result in a duplicative reporting regime for small businesses.