House Committee Advances Legislation To Repeal The Corporate Transparency

On April 21, the U.S. House Financial Services Committee advanced legislation that, if approved by the entire House, the U.S. Senate, and President Donald Trump, would repeal Corporate Transparency Act (CTA) reporting requirements for more than 30 million U.S. businesses. The measure codifies a U.S. Department of Treasury regulation limiting the CTA’s scope only to foreign entities, while protecting sensitive information already collected by requiring a purge of the beneficial ownership database.

As Connecting the Dots readers are aware, the Metals Service Center Institute (MSCI) opposes the CTA and has worked with allies like the S-Corp Association to repeal it.

Lawmakers are responding to this advocacy. “We’ve heard from small businesses and individual citizens from around the country who have been shocked to find that their small business is presumed to have committed a crime,” said bill sponsor Rep. Warren Davidson (R-Ohio). “Therefore, they’re essentially being served a search warrant … This is the most poorly thought out, poor structured approach that I could think of. What we need to do today is lock in the rulemaking that the executive branch has done.”

The bill now heads to the U.S. House floor, where lawmakers will have another opportunity to deliver meaningful relief to Main Street while preserving the tools needed to combat illicit finance.

The S-Corp Association has more information at this link.