WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, has joined Senator Tommy Tuberville (R-AL) and his colleagues in introducing legislation that would repeal the Corporate Transparency Act (CTA) and its onerous small business reporting requirements.
Background
The CTA was passed into law as part of the 2021 National Defense Authorization Act. While the bill intended to target shell companies that facilitate illicit activities, in practice, it created substantial compliance burdens for approximately 32.6 million law-abiding small businesses and associations that operate as corporations or limited liability companies. Penalties for noncompliance can result in up to two years in prison and a $10,000 fine. The Biden Administration’s botched implementation of the CTA only worsened the situation; according to a survey conducted by the National Federation of Independent Business (NFIB), 83 percent of their members were unfamiliar with the reporting requirements.
The legislation co-sponsored by Hagerty, the Repealing Big Brother Overreach Act, would repeal the CTA.
Full text of the legislation can be found here.
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