FRANKFORT, KY - Kentucky Secretary of State Michael Adams alerts Kentucky businesses of a ruling by a U.S. federal court enjoining the Corporate Transparency Act (CTA) for certain business owners.
Last week, a U.S. District Court in Alabama struck down the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) Beneficial Ownership Information (BIO) Reporting requirement as unconstitutional.
FinCEN interpreted the ruling to only apply to members of the National Small Business Association (NSBA), despite the court saying the rule was unconstitutional to all businesses. This means millions of small business owners that are not members of the NSBA are still required to do BOI reporting.
Secretary Adams has opposed this undue burden on business owners since it was first proposed.
“Despite my vociferous objections to this draconian mandate on small businesses, the Biden Administration forged ahead,” said Adams. “Now, despite a court ruling saying it violates the Constitution, this Administration is still hellbent on punishing job creators.”
Under the CTA, small business owners are required to upload their photo ID to FinCEN. Failure to comply with BOI reporting could result in criminal prosecution, punishable by up to 2 years in prison and a $10,000 fine.
The rollout of the new requirement since January has been marred with errors. Small business owners have expressed concerns with the new requirements and lack of communication from FinCEN, which failed to create a call center to answer questions from concerned business owners.
There are under 800 members of NSBA in Kentucky.
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Office of the Kentucky Secretary of State700 Capital Ave., Ste. 152, Frankfort, KY 40601(502) 564-3490 |
