FEDA Supports Congressional Effort to End CTA Reporting Requirements
FEDA has joined a group of business advocacy organizations and trade associations in urging Congress to incorporate a repeal of the Corporate Transparency Act (CTA) in an upcoming must-pass piece of legislation, such as the National Defense Authorization Act (NDAA).
Originally passed as part of the NDAA of 2021, the CTA requires companies with fewer than 20 employees to disclose beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury Department. The law was intended to combat illegal financial activity such as money laundering and tax fraud, but its broad reporting requirements created new compliance burdens for 32 million businesses.
The CTA’s reporting requirements went into effect in 2024 but were challenged by business advocacy groups. The Supreme Court is now considering whether to review two cases questioning the constitutionality of the law. However, the law has effectively been paused since March 2025 when the U.S. Treasury Department announced it would not enforce any penalties or fines against U.S. citizens or domestic companies that did not report beneficial ownership information.
Despite this exemption, business groups continue to push legislators to repeal the law to prevent a future administration from resuming enforcement. In a letter to Senate Majority Leader John Thune (R-SD) and Speaker of the House Mike Johnson (R-LA), businesses recommended language Congress could add to the next NDAA that would rescind the beneficial ownership information reporting provisions. This language would codify the U.S. Treasury’s decision not to enforce the reporting requirement, potentially saving businesses $128 billion in regulatory compliance costs.
“This amendment must be prioritized,” the letter states. “Small businesses urgently need your leadership to lock in the largest deregulatory savings of 2025 and protect over 32 million small businesses from this invasive regulation coming back in the future.”
The full letter is available here.