The Coming Deluge for Small Business.

The article discusses the potential impact of new reporting rules on small businesses in the United States. The Corporate Transparency Act (CTA), enacted in 2021, aims to tighten money-laundering laws by requiring the Treasury Department's Financial Crimes Enforcement Network (FinCEN) to identify shell companies used for illegal transactions and create a registry of businesses with less than $5 million in annual sales and fewer than 20 employees. However, many small business owners and FinCEN are not prepared for the law to go into effect in January 2024. The required data collection is extensive, and failure to comply can result in fines and jail time. Some small business owners have filed a lawsuit arguing that the law violates state sovereignty and due process. While the goal of combating money laundering is important, the article suggests that the CTA's requirements may burden businesses more than the transparency is worth. Small business owners are requesting a one-year delay to allow for better preparation and understanding of the law. [Extracted from the article]