Indy Standard

U.S. Senators Todd Young and Tommy Tuberville have reintroduced the Repealing Big Brother Overreach Act, aiming to overturn the Corporate Transparency Act (CTA) and protect small business owners. The CTA mandates that individuals with ownership interests in limited liability companies disclose personal data to the U.S. Treasury Department’s Financial Crimes Enforcement Network. Non-compliance could lead to up to two years of imprisonment and a $10,000 fine per violation.

The requirements of the CTA came into effect on January 1, 2024, but their implementation is currently on hold as legal challenges are being considered in federal courts. The U.S. Court of Appeals for the Fifth Circuit upheld an injunction against implementing the CTA nationwide. However, President Biden’s Justice Department has appealed this decision to the Supreme Court, which has agreed to hear the case.

Senator Young stated, “Current government reporting requirements are increasing costs for small businesses and adding unnecessary strain. Our bill will stop this bureaucratic overreach.”

Senator Tuberville expressed his concerns by saying, “Small businesses are the backbone of our economy... The CTA requirements that dictate they must share personal data or pay a fine and spend time in jail does nothing but stifle increased economic growth." He further added his gratitude towards Congressman Warren Davidson for partnering in reintroducing legislation aimed at repealing the Corporate Transparency Act.

Congressman Warren Davidson has led similar efforts in the U.S. House of Representatives with companion legislation.

The Repealing Big Brother Overreach Act has garnered support from over 100 trade organizations, including prominent groups like the National Federation of Independent Business and Americans for Tax Reform.