Mobile Courant

U.S. Senator Tommy Tuberville (R-AL) has introduced legislation aimed at repealing the Corporate Transparency Act (CTA) to safeguard small businesses. The CTA, enacted as part of the Fiscal Year 2021 National Defense Authorization Act (NDAA), mandates individuals with an ownership stake in a limited liability company (LLC) to disclose personal information to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN).

The CTA particularly targets American small business owners, with non-compliance potentially leading to two years of imprisonment and fines up to $10,000 per violation. Senator Tuberville's proposed law, dubbed the Repealing Big Brother Overreach Act, seeks to annul the CTA completely.

“The Corporate Transparency Act is big-government overreach at its worst,” said Senator Tuberville. “The Biden Treasury Department is attempting to create a database on every American business owner. Failure to register by the end of the year could land you in jail. This unprecedented intrusion into personal privacy must be stopped. You’d expect this sort of thing in Communist China but not in the United States of America. I am proud to be partnering with Congressman Warren Davidson in introducing a bill to repeal the Corporate Transparency Act.”

Congressman Warren Davidson (R-OH) has introduced a companion bill in the U.S. House of Representatives.

“The Financial Crimes Enforcement Network (FinCEN) is violating the personal privacy of American business owners by forcing them to disclose sensitive information. The Corporate Transparency Act must be repealed,” said Rep. Warren Davidson. “Congress must ensure that the federal government fits within the Constitution. That’s why I’m introducing this legislation and asking my colleagues to join me to pass it.”

Joining Senator Tuberville in proposing this Senate bill are Senators John Barrasso (R-WY), Ted Budd (R-NC), Cindy Hyde-Smith (R-MS), Mike Lee (R-UT), Roger Marshall (R-KS), Rick Scott (R-FL), Thom Tillis (R-NC), and J.D. Vance (R-OH).

The bill has garnered endorsements from over 100 trade organizations, including the National Federation of Independent Business, the S Corporation Association, and Americans for Tax Reform. Senator Tuberville has also written an op-ed and delivered a floor speech about the bill.

Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, and HELP Committees.