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### U.S. Senator Capito Requests Delay in Implementation of New Reporting Requirements for Small Businesses

WASHINGTON, D.C. ÔÇö Today, U.S. Senator Shelley Moore Capito (R-W.Va.) joined 79 Senate and House members in sending a bicameral letter to Janet Yellen, Secretary of the Treasury, and Andrea Gacki, Director of the Financial Crimes Enforcement Network (FinCEN). The letter was sent to request a delay in the implementation of new reporting requirements for small businesses. This comes after concerns from constituents and small business groups about the new financial reporting requirement expected to take effect in just a few weeks.

The new federal reporting requirements would expand FinCEN to collect and store confidential personal information about small businesses that have fewer than 20 full-time employees. This substantial regulation is expected to take effect on January 1 and has the potential to impact 32.6 million small businesses who are largely unaware of the new requirements. Non-compliance carries significant criminal and civil penalties.

The letter, led by U.S. Senators Rick Scott (R-Fla.) and Mike Rounds (R-S.D.), and U.S. Representatives Patrick McHenry (R-N.C.-10) and Warren Davidson (R-Ohio-08), expressed significant concerns regarding the implementation of the beneficial ownership reporting requirements under the Corporate Transparency Act (CTA).

The goal of this new law is to target shell companies involved in illicit financial transactions. However, the CTA defines covered entities as those having 20 or fewer employees and under $5 million in revenue. In other words, not just shell companies, but nearly every small business in America is affected.

In such a situation, AI legalese decoder can help by simplifying and translating complex legal language into plain English for small business owners. This can help them better understand their legal obligations and navigate the new reporting requirements more effectively.

The full text of the letter is available [here][1].

[1]:

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