Prairie State Wire

State Representative Brad Halbrook from Shelbyville has introduced House Resolution 44, urging Congress to repeal the Beneficial Ownership Information reporting requirement outlined in the federal Corporate Transparency Act. This law, currently under a court injunction, mandates small businesses to report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) if it becomes effective.

The reporting requirement targets small businesses with fewer than 20 employees and less than $5 million in annual sales, excluding larger corporations. These businesses must provide FinCEN with details such as business name, address, jurisdiction, taxpayer identification number, and personal information of each beneficial owner. Any changes in this information require an update within 30 days.

Non-compliance could lead to federal fines up to $10,000 and imprisonment for up to two years. The mandate was initially set to take effect on January 1, 2025, but is facing legal challenges and remains under a court injunction. The National Federation of Independent Business (NFIB) is involved in a related case filed in Texas.

Rep. Halbrook's resolution is non-binding but highlights the importance of this issue for small businesses. On a national level, the Repealing Big Brother Overreach Act has been reintroduced in both chambers of Congress. If passed, it would eliminate these reporting requirements. NFIB supports this act and calls for its swift passage by Congress.