Pontiac Times

Today, Representative Lisa McClain (R-Mich.) and several House colleagues called on Treasury Secretary Janet Yellen to postpone the implementation of the Corporate Transparency Act (CTA). The CTA, which was passed by the House in 2021, mandates businesses to report significant occupational data and sensitive personal information. Without a delay, millions of small businesses could face penalties, fines, or even jail time due to the reporting deadline.

"While CTA intends to target shell corporations engaged in illicit transactions, its language actually targets all legal entities with less than $5 million in annual revenues and less than 20 employees – in other words, every small business in the United States," stated the Members of Congress. "Failure to comply can result in fines of over $590 per day, as well as felony charges and up to two years imprisonment. [The Treasury Department’s Financial Crimes Enforcement Network] FinCEN reported 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."

"In the meantime, a paperwork violation that includes large fines and jail time is devastating to America’s small business owners simply trying to make ends meet. We ask that you delay CTA’s implementation date to comply with the intent of the law and allow the legalities, distribution of information and complicated reporting requirements to be clarified," continued the Members of Congress.

This request follows a report from FinCEN indicating that only 10 percent of required submissions have been received from affected businesses.

Rep. McClain's letter was co-signed by numerous representatives including Rep. Donald G. Davis (D-N.C.), Rep. Bill Huizenga (R-Mich.), Rep. French Hill (R-Ark.), among others.

A copy of the letter is available for public viewing.