Mobile Courant

U.S. Senator Tommy Tuberville has reintroduced the Repealing Big Brother Overreach Act, aiming to overturn the Corporate Transparency Act (CTA) and offer protection to small business owners. The CTA, part of the Fiscal Year 2021 National Defense Authorization Act, mandates that individuals with ownership in a limited liability company disclose personal data to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Non-compliance could lead to penalties including up to two years in jail and fines reaching $10,000 per violation.

The enforcement of CTA requirements was set for January 1 but is currently on hold as legal challenges are underway in federal courts. While the U.S. Court of Appeals for the Fifth Circuit upheld an injunction against implementing the CTA nationwide, an appeal by the Biden Justice Department is pending before the Supreme Court.

“Small businesses are the backbone of our economy,” stated Senator Tuberville. “Small business owners are the ultimate job creators, yet they have been crushed by four years of Joe Biden’s disastrous economic policies. They need less government regulation, not more." He further criticized the act's requirements as an intrusion into personal privacy comparable to practices in "Communist China."

Congressman Warren Davidson has introduced similar legislation in the House of Representatives. He commented, “The Financial Crimes Enforcement Network (FinCEN) infringes American small business owners’ privacy rights by forcing them to disclose sensitive information to the government.”

The Repealing Big Brother Overreach Act has garnered support from over 100 trade organizations such as the National Federation of Independent Business and Americans for Tax Reform.

Senator Tuberville represents Alabama and serves on several Senate committees including Armed Services and Veterans’ Affairs.