Â鶹TV

This post has been updated.

The House has approved legislation by a unanimous 408-0 vote that would grant small businesses, formed before Jan. 1, 2024, a one-year extension to comply with the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting.

Prior to the House vote on the Protect Small Businesses from Excessive Paperwork Act, Â鶹TV sent a letter of support for the bill because the extension would give our members more time to understand and comply with BOI reporting rules.

Â鶹TV worked closely with Senate Banking Committee Chairman Tim Scott (R-S.C.) to get a companion bill introduced in the Senate just days after the measure passed the House.

Senate Banking Committee members, including Sens. Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Katie Boyd Britt (R-Ala.), Pete Ricketts (R-Neb.), Jim Banks (R-Ind.) and Kevin Cramer (R-N.D.) joined Sen. Scott on the legislation. Sens. Jerry Moran (R-Kan.) and James Lankford (R-Okla.) also signed onto the bill.

The Financial Crimes Enforcement Network (FinCEN), which oversees the implementation of the CTA, on Jan. 24 putting a halt to small business reporting requirements — regardless of when they were formed. While FinCEN’s administrative action is helpful, having Congress step in to pass legislation will codify the one-year extension and provide a durable grace period.

As this legislation moves through the process, companies must be aware that the situation surrounding FinCEN’s pause and the courts’ action is fluid and could still change. That’s because several court cases are ongoing regarding the rule.

Â鶹TV will continue to work on the legislative and legal fronts to ensure small businesses have ample time to file BOI with FinCEN.