Congressman Dan Meuser Demands FinCEN Provide Small Businesses Clarity Amid Ongoing Legal Challenges

WASHINGTON, D.C. - Congressman Dan Meuser (PA-09) today criticized the Financial Crimes Enforcement Network (FinCEN) for its inadequate efforts to assist small businesses with the Corporate Transparency Act's (CTA) burdensome beneficial ownership information (BOI) reporting requirements. Following a preliminary injunction issued by U.S. District Judge Amos Mazzant that paused the January 1, 2025, compliance deadline, Rep. Meuser called for immediate clarity from FinCEN, citing their failure to adequately prepare businesses for compliance.

"This injunction provides temporary relief, but FinCEN's failures have left small businesses in the lurch," said Congressman Meuser. "Despite oversight hearings, briefings, and repeated calls for action, FinCEN has done a supremely inadequate job helping small businesses understand or comply with these requirements. It's time for them to step up, provide clear guidance, and formally delay enforcement to avoid crushing penalties and costs of up to $10,000 for businesses already struggling to keep their doors open."

Congressman Meuser, who conducted oversight of FinCEN on the Financial Services Committee earlier this year and followed up with a briefing on the Small Business Committee, led a group of lawmakers in sending a letter demanding FinCEN immediately clarify how the injunction impacts compliance obligations. Co-signed by Representatives Blaine Luetkemeyer, Andy Barr, Roger Williams, Barry Loudermilk, Young Kim, Zach Nunn, Monica De La Cruz, and French Hill, the letter also urged FinCEN to formally delay BOI enforcement until legal challenges are resolved.

"Small businesses are the strength of our economy, yet FinCEN's lack of preparation has turned this regulatory requirement into a significant burden," added Meuser. "The January 1 deadline was never realistic given the chaos FinCEN created. We need immediate action to ensure businesses are not penalized for FinCEN's incompetence."

The Congressman emphasized that this debacle underscores why FinCEN must prioritize transparency, clarity, and support for America's small businesses.

The letter to FinCEN can be found here.

Background:

The Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA) mandate that small businesses report extensive ownership and control information to FinCEN. The rules from FinCEN are overly burdensome for small businesses and not what Congress intended in the CTA. Small businesses face particular challenges because they often lack the resources to comply with complex federal requirements, potentially leading to high compliance costs. Moreover, the January 1, 2025, enforcement deadline is too soon, giving businesses insufficient time to adapt amidst legal uncertainties following a preliminary injunction. If small businesses do not comply by Jan. 1, they face a penalty of up to $10,000

The court case, Texas Top Cop Shop, Inc. v. Garland, resulted in a preliminary injunction by Judge Amos Mazzant, finding the CTA and its rules likely unconstitutional. The decision halts enforcement temporarily but creates ambiguity for small businesses about their compliance obligations, underlining the need for clearer guidance from FinCEN.

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