Bicameral Bill Aims to Help Small Firms Comply With BOI Reporting Rule
Five House and Senate Democrats introduced a bill June 6 that would require the Financial Crimes Enforcement Network and the Small Business Administration to work together to help small businesses comply with the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA).
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The lawmakers said that while the reporting requirements are minimal for most small businesses, outreach during the initial rollout of the BOI rule was limited, leading to widespread confusion.
House Small Business Committee ranking member Nydia Velazquez, D-N.Y., introduced the FINCEN-SBA Coordination on Beneficial Ownership Registration Act with House Financial Services Committee ranking member Maxine Waters, D-Calif. It was referred to the House Financial Services and Small Business committees. Sens. Elizabeth Warren, D-Mass., Ed Markey, D-Mass., and Sheldon Whitehouse, D-R.I., are introducing Senate companion legislation.
Although the Treasury Department announced in March that it plans to narrow the scope of the BOI rule so that it applies only to foreign firms and not U.S. businesses, congressional Democrats argue that Treasury is ignoring the intent of the CTA, which is designed to prevent sanctioned parties and others from hiding money or property in the U.S. (see 2503140054, 2503030042 and 2503110025). The Trump administration and congressional Republicans insist the existing rule is overly burdensome, especially for small businesses.