Small Businesses Win as Senators Tuberville and Davidson Propose Legislation to Repeal Burdensome Reporting Requirements

Sen. Tommy Tuberville (AL) and Rep. Warren Davidson (OH-08) have introduced legislation aimed at relieving small businesses from burdensome reporting requirements. The National Federation of Independent Business (NFIB) fully supports this legislation as it would repeal the Corporate Transparency Act (CTA), which imposes obligations on small businesses to disclose beneficial ownership information. This regulation has been deemed one of the most significant and troublesome regulations for small businesses.

According to Jeff Brabant, NFIB Vice President of Federal Government Relations, the repeal of the CTA is a positive development for small business owners. The Act has been criticized for targeting small businesses and subjecting them to harsh penalties for minor paperwork violations. It also grants law enforcement agencies broad access to a database containing sensitive information about millions of small business owners.

Under the CTA, corporations, Limited Liability Companies (LLCs), or similar entities with 20 or fewer employees and $5 million or less in gross receipts are required to report their beneficial ownership details to FinCEN. This rule came into effect on January 1, 2024, and is estimated to impact 32.6 million small businesses in its first year, with millions more affected annually thereafter. NFIB has strongly opposed the Corporate Transparency Act and has actively lobbied for its repeal.

Sen. Tuberville and Rep. Davidson are commended for their efforts to repeal this legislation, which NFIB believes is irreparable. The NFIB fully supports this bill as it aims to ease the burden on small businesses and provide relief from burdensome reporting requirements that have been deemed harmful by many in the business community.

The elimination of this regulation will allow small business owners to focus on growing their businesses without worrying about compliance with unnecessary paperwork requirements that have caused frustration and added expenses for many over time.