Hearing concerns NFIB’s efforts to stop the burdensome reporting requirements
What it means: A hearing was held in the case to block the beneficial ownership reporting requirements from going into effect at the end of the year. The new small business registry imposes burdensome paperwork requirements, risks the privacy of small business owners, and has severe penalties for not complying.
Our take: “For many of America’s small businesses, the beneficial ownership reporting deadline is January 1, 2025. For them, time is of the essence, and they need to know whether they must comply with a reporting requirement that mandates revealing private and personal identifying information.” – Beth Milito, Executive Director of NFIB’s Small Business Legal Center.
Take Action: Urge Congress to support repealing the burdensome reporting requirements before it’s too late.
The fight against the Corporate Transparency Act (CTA) continues. On Oct. 9, the U.S. District Court for the Eastern District of Texas held its first hearing in the case Texas Top Cop Shop, Inc., et al. v. Garland, et al. This hearing concerns NFIB’s attempt to block the reporting requirements from going into effect.
NFIB filed the lawsuit challenging the CTA regarding the legality of the beneficial ownership reporting requirements for small businesses. A decision is expected in four to six weeks and the judge noted in the hearing his awareness of the upcoming deadline and plans to give a decision in time for either side to appeal before the effective date.
NFIB attorneys remain optimistic as the judge questioned what an injunction would look like and who it would apply to if he did issue one. Since NFIB is involved in the case, NFIB members would be affected by the ruling. The lawsuit was filed with the Texas Top Cop Shop, Data Comm for Business, Mustardseed Livestock, Russell Straayer, and the Libertarian Party of Mississippi.
An appeal is likely regardless of how the judge rules. NFIB will continue to monitor the case and next steps. Hear from the NFIB Small Business Legal Center Executive Director Beth Milito and Caleb Kruckenberg, NFIB’s attorney, discussing the case and reporting requirements in the latest episode of NFIB’s Small Business Rundown podcast. Urge Congress to support repealing this burdensome requirement before it’s too late.
