Berks County News

Congressman Dan Meuser has voiced criticism towards the Financial Crimes Enforcement Network (FinCEN) regarding its efforts to assist small businesses in navigating the Corporate Transparency Act's (CTA) beneficial ownership information (BOI) reporting requirements. A preliminary injunction from U.S. District Judge Amos Mazzant has paused the compliance deadline initially set for January 1, 2025. Congressman Meuser emphasized the need for FinCEN to provide immediate clarity and support to small businesses.

“This injunction provides temporary relief, but FinCEN’s failures have left small businesses in the lurch,” said Congressman Meuser. “Despite oversight hearings, briefings, and repeated calls for action, FinCEN has done a supremely inadequate job helping small businesses understand or comply with these requirements. It’s time for them to step up, provide clear guidance, and formally delay enforcement to avoid crushing penalties and costs of up to $10,000 for businesses already struggling to keep their doors open.”

In response, Congressman Meuser led a group of lawmakers in sending a letter demanding that FinCEN clarify how this injunction affects compliance obligations. The letter was co-signed by Representatives Blaine Luetkemeyer, Andy Barr, Roger Williams, Barry Loudermilk, Young Kim, Zach Nunn, Monica De La Cruz, and French Hill. The legislators urged FinCEN to delay BOI enforcement until legal challenges are resolved.

"Small businesses are the strength of our economy; yet FinCEN’s lack of preparation has turned this regulatory requirement into a significant burden,” added Meuser. “The January 1 deadline was never realistic given the chaos FinCEN created. We need immediate action to ensure businesses are not penalized for FinCEN’s incompetence."

The Congressman highlighted that this situation underscores why transparency and support from FinCEN are crucial for American small businesses.

Background on this issue reveals that BOI reporting under CTA requires extensive disclosure of ownership details by small businesses to FinCEN. These rules have been criticized as overly burdensome compared to what Congress intended with CTA. Many small enterprises lack resources needed for complex federal compliance which can result in high costs if not addressed promptly.

The recent court case Texas Top Cop Shop Inc., v Garland led Judge Amos Mazzant to issue a preliminary injunction citing potential unconstitutionality within CTA's provisions halting enforcement temporarily but leaving ambiguity about compliance needs stressing further guidance necessity from FinCEN.