GCCA Joins Coalition Letter Urging Delay in CTA Compliance Deadline

GCCA has joined with over 100 groups expressing strong support for H.R. 9278, legislation which would delay the Corporate Transparency Act’s (CTA) year-end compliance deadline. This bill provides a commonsense, bipartisan solution to an impending regulatory disaster which, left unaddressed, will threaten countless small business owners and employees with steep fines and even jail time.

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.

The CTA is unique in that it explicitly targets the very companies least equipped to shoulder the regulatory burdens. The statute includes a carve out for entities whose revenue exceeds $5 million and which employ more than 20 full-time employees. Companies not meeting those thresholds – the vast majority of small businesses – must comply.

A delay of the year-end filing deadline is in line with Congressional intent. In enacting the CTA, lawmakers explicitly called for a reporting deadline of “not later than 2 years after the effective date of the regulations” for existing entities. This timeframe was designed to give affected entities sufficient time to learn of, understand and comply with the new reporting regime, while minimizing the burdens on reporting companies.