The Irrigation Association, Fairfax Virginia, has joined a coalition of national organizations in supporting H.R. 9278, which seeks to delay the compliance deadline for beneficial ownership information reporting under the Corporate Transparency Act.
In a letter addressed to U.S. House Speaker Mike Johnson, the coalition urges a one-year postponement of the Act’s requirements, citing concerns over the impact on small businesses.
“This bill provides a commonsense, bipartisan solution to an impending regulatory disaster which, left unaddressed, will threaten countless small business owners and employees with steep fines and even jail time,” reads the letter.
The CTA mandates that companies disclose detailed beneficial ownership information to the Financial Crimes Enforcement Network. Non-compliance with the Act could lead to fines exceeding $590 per day and possible felony charges. The letter emphasizes that small businesses, which are the most affected by these regulations, are not adequately prepared for the impending year-end deadline, with only 10% of the required submissions having been filed to date.
The coalition argues that small businesses need more time to understand and comply with the complex requirements of the CTA, especially given the ongoing legal challenges. The letter points out that the Act explicitly exempts larger entities with over $5 million in revenue and more than 20 full-time employees, leaving small businesses to shoulder the regulatory burden.
The signatories, including the Irrigation Association, underscore the importance of aligning the compliance timeline with Congressional intent, which originally called for a two-year window for companies to meet the new reporting requirements. They urge Johnson to bring H.R. 9278 to a vote, noting that it offers a bipartisan solution to the challenges small businesses face under the current regulatory framework.
