“This is a huge reprieve to small businesses, and hopefully one that the senate will support.”
-Rose Law Group partner and Corporate Transactions Director, Shruti Gurudanti
By NAHB
The House has approved legislation by a unanimous 408-0 vote that would grant small businesses, formed before Jan. 1, 2024, a one-year extension to comply with the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting.
Prior to the House vote on the Protect Small Businesses from Excessive Paperwork Act, NAHB sent a letter of support for the bill because the extension would give our members more time to understand and comply with BOI reporting rules.
The Financial Crimes Enforcement Network (FinCEN), which oversees the implementation of the CTA, issued a statement on Jan. 24 putting a halt to small business reporting requirements — regardless of when they were formed. While FinCEN’s administrative action is helpful, having Congress step in to pass legislation will codify the one-year extension and provide a durable grace period.
