WASHINGTON - Following today’s ruling in the U.S. District Court for the Eastern District of Texas to block the rollout of rushed reporting rules by the U.S. Treasury Department, Rep. Lisa McClain (R-Mich.) released the following statement:
“The decision out of Texas is a massive win for America’s small businesses, and I am thankful there will be adequate time to clarify the guidelines and properly inform businesses how to ratify their legitimacy,” said McClain. “Millions of small businesses were close to being subjected to burdensome penalties because of the complicated reporting requirements hastily set forth by the Treasury Department. The Court’s decision upholds Congressional intent for a two-year rollout after the effective date of the regulations.”
Background:
In November, McClain led 43 of her House colleagues in a letter to Treasury Secretary Janet Yellen and FinCEN Director Andrea Gacki, demanding a delay in implementing the Corporate Transparency Act (CTA).
The letter sought to grant small businesses additional time to understand and comply with the reporting requirements.
The CTA, which passed the House in 2021, was designed to target shell companies engaged in illicit transactions.
Without delaying requirements under the CTA, the measure would subject millions of small businesses to penalties, fines, and even jail time for not properly filing the information required under regulations.
