IA advocates for delay in Corporate Transparency Act filing deadlines

The letter included signatories from a broad range of industries and advocates for the passage of S. 3625.
By Luke Reynolds
_IA-advocates-for-delay-in-Corporate-Transparency-Act-filing-deadlines

The Irrigation Association, alongside a broad coalition of organizations representing thousands of small businesses, signed a letter addressed to the leaders of the Senate Committee on Banking, urging for the postponement of the filing deadlines under the Corporate Transparency Act 

The letter, sent to Chairman Sherrod Brown, D-Ohio, and Ranking Member Tim Scott, R-South Carolina, on March 19, advocates for the passage of S. 3625, the Protect Small Business and Prevent Illicit Financial Activity Act, introduced by Scott. 

The legislation seeks a one-year delay of the CTA’s filing deadline, aiming to provide small businesses and the Financial Crimes Enforcement Network with additional time to understand the new reporting requirements and to mitigate the risk of severe penalties for noncompliance. The call for a delay is further supported by the recent United States District Court for the Northern District of Alabama ruling, which found aspects of the CTA unconstitutional, although this decision currently applies only to members of the National Small Business Association. 

The letter highlights concerns that the CTA has become a “bureaucratic nightmare” for America’s smallest businesses, imposing complex reporting requirements and risking sensitive personal information. It points out that the majority of affected entities are small businesses, often with 20 or fewer employees or less than $5 million in revenue, which are least equipped to navigate these regulatory burdens. 

Furthermore, the signatories argue that the current compliance timeframe does not align with the congressional intent of providing covered entities two years to adapt, nor does it account for the low rate of compliance observed since the filing commenced. 

The Irrigation Association’s involvement in this initiative underscores the organization’s commitment to protecting small businesses within the agricultural and irrigation sectors from undue regulatory burdens, ensuring they have the necessary time and resources to comply with new laws without hindering their operations, according to Nathan Bowen, Irrigation Association advocacy and public affairs vice president. 

“Passing this legislation is a critical step toward ensuring that businesses within our sector have the necessary time to navigate and adapt to this new regulatory burden,” says Bowen. “We call on Congress to take action and to help businesses in our industry to comply without undue strain.”

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