New House Bill Would Delay Corporate Transparency Act Implementation For One Year

U.S. Rep. Zach Nunn (R-Iowa) has introduced a new bill, H.R. 9278, the Protect Small Businesses from Excessive Paperwork Act, which, if signed into law, would delay the Corporate Transparency Act’s (CTA) reporting requirements by one year. The bill is also supported by Rep. French Hill (R-Ark.), Rep. Sharice Davids (D-Kansas), and Rep. Yadira Caraveo (D-Colo.).

The CTA, as Connecting the Dots has explained previously, requires nearly every U.S. business to report, and to continuously update, information regarding their beneficial owners. The law includes civil and criminal penalties of up to $10,000 and two years of jail time for failing to report this information. These penalties could apply even in cases that amount to nothing more than a paperwork violation.

In late July, the Metals Service Center Institute and more than 130 other trade groups wrote a letter supporting other legislative efforts to delay the CTA. When it comes to the CTA, Rep. Nunn is advocate for the small business community.

As the S-Corp Association has noted, last year the congressman introduced a separate CTA delay bill that passed the House on a nearly-unanimous vote. That legislation is currently pending in the Senate, but has been held up due to opposition from Banking Committee Chair Sherrod Brown (D-Ohio). While time is running out for lawmakers to act, it is good news that two Democratic House lawmakers are on board with the commonsense measure to delay the CTA’s reporting requirements.

Stay tuned to Connecting the Dots for updates on all of these efforts.