WASHINGTON, D.C. (WVDN) — U.S. Senator Shelley Moore Capito (R-W.Va.) joined 79 Senate and House members in sending a bicameral letter to Janet Yellen, Secretary of the Treasury, and Andrea Gacki, Director of the Financial Crimes Enforcement Network (FinCEN), requesting a delay in the implementation of new reporting requirements for small businesses. The letter – led by U.S. Senators Rick Scott (R-Fla.) and Mike Rounds (R-S.D.), and U.S. Representatives Patrick McHenry (R-N.C.-10) and Warren Davidson (R-Ohio-08) – follows concerns from constituents and small business groups about the new financial reporting requirement expected to take effect in just a few weeks.
The new federal reporting requirements would expand FinCEN to collect and store confidential personal information about small businesses that have fewer than 20 full-time employees. This substantial regulation that impacts nearly every small business in America is expected to take effect January 1 and impact 32.6 million small businesses who are largely unaware of the new requirements that carry significant criminal and civil penalties for non-compliance.
“On behalf of the millions of small businesses in our states, we write to you today with significant concerns regarding the implementation of the beneficial ownership reporting requirements under the Corporate Transparency Act (CTA),” the members said.
“While the goal of this new law is to target shell companies involved in illicit financial transactions, the CTA defines covered entities as those having 20 or fewer employees and under $5 million in revenue. In other words, not just shell companies, but nearly every small business in America,” the members continued.