U.S. Senators Introduce Corporate Transparency Act Bill

As the S-Corp Association reported, after the U.S. House Committee on Financial Services advanced last month Corporate Transparency Act (CTA) relief, the Senate stepped up with legislation of its own. Sens. John Kennedy (R-La.) and Mike Lee (R-Utah) have introduced a bill that mirrors the House approach, which would codify the U.S. Department of Treasury’s March 2025 rule limiting Beneficial Ownership Information reporting to foreign entities only, while also requiring the U.S. government to delete the personal data already collected from American business owners under the original mandate. (Read more about the House bill at this link.)

The Kennedy-Lee bill takes the same risk-based approach to beneficial ownership enforcement, directing resources toward bad actors rather than treating the entire U.S. business community as potential suspects. The path forward in the Senate is not without obstacles, however. A handful of members on both sides of the aisle continue to view the CTA as a legitimate and legally defensible law enforcement tool.

The good news is that the opposition is limited. The Metals Service Center Institute remains hopeful the Senate will successfully consider this legislation. Again, as a reminder, the Treasury Department rule has provided U.S. businesses with immediate relief by limiting the CTA’s scope only to foreign entities.