The National Federation of Independent Business (NFIB) is urging the U.S. Senate to pass S.4419. a bill that would repeal the Beneficial Ownership Information (BOI) reporting requirement affecting more than 32 million small businesses nationwide.
Legislation action
On May 1, the agency sent a formal letter to the Senate in support of S. 4419, which seeks to eliminate BOI reporting rules created under the Corporate Transparency Act (CTA). The mandate requires small businesses to submit detailed ownership information to the federal government.
Yet, the NFIB argues the rule is invasive and unconstitutional.
The NFIB argues that the BOI database presents significant data security risks. For nearly a decade, the organization has opposed the rule in Congress, federal agencies, and the courts.
Notably, NFIB is urging the federal government to destroy previously collected BOI data and continues to advocate for a full repeal of the mandate.
Impact and penalities
If the rule stays in effect, more than 32 million small businesses will need to comply. If they fail to do so, they could face civil and criminal penalties, including fines of up to $10,000 and imprisonment for up to two years in federal prison.
NFIB Director of Federal Government Relations Josh McLeod said, “Repealing the invasive Beneficial Ownership Information mandate would protect over 32 million small businesses from being forced to hand over more personal data to the federal government.”
The NFIB is urging the Senate to act quickly on S. 4419 as discussions continue about the future of BOI reporting requirements for small businesses.
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