Imagine going to jail for forgetting to file a single document. Sound absurd? Well, that's the reality small business owners face under the Corporate Transparency Act (CTA). But change might be on the horizon...
In episode 383 of The Accounting Podcast, we discussed how Roger Harris, the co-host of the Federal Tax Updates podcast, testified before Congress about the CTA. Roger always brings a valuable small business owner perspective to these discussions. After the hearing, he shared some intriguing news: a bill has been introduced to repeal the CTA.
I know some of you might be thinking, "Blake, didn't you fill out the beneficial ownership information (BOI) report in just five minutes? Is it really that big of a deal?" And sure, the initial filing might not be a huge burden. But here's the thing: every time there's a change - a new driver's license, a new business partner, a move to a new location - you've got to file an updated report within 30 days. Small business owners don't have time for a never-ending cycle of paperwork.
And the penalties for non-compliance are no joke. We're talking jail time for forgetting to file a document. The last thing small business owners need is the constant threat of legal action hanging over their heads for a simple clerical error.
The CTA was created with good intentions - to prevent illegal money movement and improve transparency. But in practice, the law-abiding small businesses suffer, while the real bad actors continue to fly under the radar.
So, when I heard that a bill had been introduced to repeal the CTA, I got excited. It's about time someone in Congress recognized the undue burden this law places on small businesses and took action to make a change.
I’ll keep an eye on this developing story. Reach out to your representatives to voice your support for the repeal of the CTA. Together, we can make a difference and create a more business-friendly environment for entrepreneurs.
