Duval Times

Senators Rick Scott and Mike Rounds, along with House Financial Services Chairman Patrick McHenry and Representative Warren Davidson, have led a group of 76 colleagues in sending a letter to Janet Yellen, Secretary of the Treasury, and Andrea Gacki, Director of the Financial Crimes Enforcement Network (FinCEN), requesting a delay in the implementation of new reporting requirements for small businesses. The letter expresses significant concerns about the impact of the new federal reporting requirements on small businesses and calls for a delay in the January 1st implementation date.

The new reporting requirements, which are part of the Corporate Transparency Act (CTA), would expand FinCEN's authority to collect and store confidential personal information about small businesses with fewer than 20 full-time employees. The regulations would require small businesses to provide information about their beneficial owners, including owners, board members, senior management, and legal representation. Failure to comply with the reporting requirements could result in significant criminal and civil penalties.

The letter highlights the concerns of small business owners who are largely unaware of the new requirements and the potential penalties for non-compliance. According to a survey conducted by the National Federation of Independent Business (NFIB), 90 percent of respondents were entirely unfamiliar with the reporting requirements. The lack of awareness and education about the new regulations is a cause for alarm and needs to be addressed before the law is implemented.

The letter also raises concerns about the lack of finalization of two critical rulemakings by FinCEN. The "Access Rule" and the "Customer Due Diligence Rule" are essential for protecting the personal information of small businesses and ensuring that the reporting requirements do not create duplicative burdens for small businesses.

In light of these concerns, the letter requests that FinCEN delay the January 1, 2024, effective date for all beneficial ownership information (BOI) requirements by a minimum of one year. The delay would provide more time for small business owners to become aware of their obligations and for FinCEN to review and improve the regulatory framework.

The letter has garnered support from various organizations representing millions of small businesses across the country. These organizations include the National Federation of Independent Business (NFIB), the American Rental Association, the Independent Electrical Contractors, the National Association of Convenience Stores, and many others.

The letter concludes by thanking Secretary Yellen and Director Gacki for their prompt attention to this matter and emphasizes the importance of addressing the concerns raised by small business owners and stakeholders.

The request for a delay in the implementation of the reporting requirements reflects the concerns of lawmakers and small business groups about the potential burdens and consequences this regulation could have on small businesses. By urging FinCEN to delay the implementation and provide more time for education and rule finalization, the lawmakers aim to ensure that small businesses have the necessary resources and understanding to comply with the new requirements without facing undue hardship.

To learn more, click on this link: https://www.rickscott.senate.gov/2023/12/sen-rick-scott-sen-mike-rounds-chair-patrick-mchenry-rep-warren-davidson-lead-76-colleagues-in-bicameral-letter-to-fincen-demanding-delay-of-red-tape-rule-on-small-businesses