Letter
December 18, 2024
Dear Speaker Johnson, Minority Leader Jeffries, Majority Leader Schumer, and Minority Leader McConnell:
The undersigned organizations, representing millions of small businesses, write in strong support of language included in the Further Continuing Appropriations and Disaster Relief Supplemental Appropriations Act of 2025 which would delay the Corporate Transparency Act’s (CTA) year-end compliance deadline for existing entities. This provision would provide much-needed relief to the Main Street business community, enable federal regulators to continue their education and outreach efforts, and allow various legal challenges to make their way through the courts.
The CTA mandates that companies disclose and regularly update detailed beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). It subjects covered entities and their “beneficial owners” to vague and complex reporting requirements while putting their sensitive personal information at risk. Failure to comply can result in fines of over $590 per day, as well as felony charges and up to two years imprisonment.
FinCEN estimates that more than 32 million such entities will be affected by the new law just this year, with an additional 6 million each subsequent year as new businesses are formed. Yet as of December 1, 2024 – just one month before a year-end deadline – FinCEN has received less than 30 percent of the required filings, highlighting the stark education gap when it comes to the compliance obligations mandated by the CTA.
Adding to the confusion are the myriad legal challenges that have been filed throughout the country, and which stand at various stages of the legal process. Notably, a nationwide injunction against the CTA was recently appealed and will be heard by the Fifth Circuit, while an Alabama court ruling that found the CTA unconstitutional is pending appeal in the Eleventh Circuit. Small businesses therefore find themselves in a precarious position: they are currently under no obligation to file, but a single ruling could reverse that dynamic, leaving them with just days to comply with this burdensome and costly statute.
The one-year delay included in the Continuing Resolution bill addresses these challenges, and we strongly encourage lawmakers to pass it.
Sincerely,
- AICC, The Independent Packaging Association
- American Council of Engineering Companies
- American Dental Association
- American Farm Bureau Federation
- American Financial Services Association
- American Foundry Society
- American Hotel & Lodging Association
- American Lighting Association
- American Mold Builders Association
- American Pipeline Contractors Association
- American Supply Association
- American Veterinary Medical Association
- AmericanHort
- America’s SBDC
- Associated Builders and Contractors
- Associated Equipment Distributors
- Associated General Contractors of America
- Coalition of Franchisee Associations
- Community Associations Institute (CAI)
- Construction Industry Round Table
- Design-Build Institute of America
- Education Market Association
- Energy Marketers of America
- Family Business Coalition
- Foodservice Equipment Distributors Association
- Forest Resources Association
- Forging Industry Association
- Franchise Business Services
- GAWDA
- Global Cold Chain Alliance
- Heating, Air-conditioning and Refrigeration Distributors International (HARDI)
- ICSC
- Independent Electrical Contractors
- Industrial Fasteners Institute
- International Association of Movers
- International Foodservice Distributors Association
- International Franchise Association
- International Housewares Association
- International Sign Association
- Leading Builders of America
- Main Street Employers Coalition
- Manufactured Housing Institute
- Marine Retailers Association of the Americas
- Metals Service Center Institute
- MHEDA
- Nareit
- National Apartment Association
- National Association of Convenience Stores
- National Association of Electrical Distributors
- National Association of Insurance and Financial Advisors
- National Association of Wholesaler-Distributors
- National Automatic Merchandising Association (NAMA)
- National Beer Wholesalers Association
- National Community Pharmacists Association (NCPA)
- National Council of Farmer Cooperatives
- National Electrical Contractors Association
- National Electrical Manufacturers Representatives Association (NEMRA)
- National Federation of Independent Business
- National Franchisee Association
- National Funeral Directors Association
- National Grocers Association
- National Lumber and Building Material Dealers Association
- National Marine Distributors Association
- National Multifamily Housing Council
- National Roofing Contractors Association
- National RV Dealers Association (RVDA)
- National Small Business Association
- National Tooling and Machining Association
- National Utility Contractors Association
- National Wooden Pallet & Container Association
- North American Association of Food Equipment Manufacturers (NAFEM)
- North American Die Casting Association
- North American Equipment Dealers Association
- Oregon Cattlemen’s Association
- Outdoor Power Equipment and Engine Service Association
- Performance Racing Industry (PRI)
- Plumbing-Heating Cooling Contractors – National Association
- Power & Communication Contractors Association
- Precision Machined Products Association
- Precision Metalforming Association
- PRINTING United Alliance
- Private Investor Coalition
- Reserve Organization of America
- S Corporation Association
- Service Station Dealers of America and Allied Trades
- Small Business Legislative Council (SBLC)
- Society of Collision Repair Specialists (SCRS)
- South Dakota Trust Association
- Southeastern Lumber Manufacturers Association
- Specialty Equipment Market Association (SEMA)
- Subchapter S Bank Association
- Textile Care Allied Trades Association
- The Association for Hose and Accessories Distribution
- The Real Estate Roundtable
- The Wholesale Florist and Florist Supplier Association
- Tile Roofing Industry Alliance
- Tire Industry Association
- U.S. Chamber of Commerce
- Virginia Cattlemen’s Association
- Virginia Farm Bureau
- WASDA – Water and Sewer Distributors of America
- Water and Sewer Distributors of America
- Wholesale Beer Distributors of Texas
- Wholesale Florist & Floral Supplier Association
- Wine Institute
- Wyoming Farm Bureau Federation
- Wyoming Stock Growers Association
