Nashville Standard

United States Senator Bill Hagerty, representing Tennessee and a member of the Senate Banking Committee, has aligned with Senator Tommy Tuberville from Alabama and other colleagues in introducing new legislation. This proposed law aims to repeal the Corporate Transparency Act (CTA), which has been criticized for imposing significant reporting requirements on small businesses.

The CTA was initially enacted as part of the 2021 National Defense Authorization Act. Its primary goal was to address shell companies involved in illicit activities. However, it has inadvertently imposed substantial compliance obligations on approximately 32.6 million small businesses and associations structured as corporations or limited liability companies. The penalties for failing to comply with these requirements can include up to two years of imprisonment and a $10,000 fine.

Critics have pointed out that the Biden Administration's implementation of the CTA has compounded its challenges. A survey by the National Federation of Independent Business (NFIB) revealed that 83 percent of their members were not familiar with these reporting obligations.

Senator Hagerty supports the Repealing Big Brother Overreach Act, which seeks to overturn the CTA entirely.

"Full text of the legislation can be found here."