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US LLCs must file new report with Treasury FinCEN or risk prison

35 points| ruffrey | 1 year ago |fincen.gov

42 comments

order

ptliddle|1 year ago

A Texas court just enacted a nationwide injunction on this.

https://www.texasattorneygeneral.gov/news/releases/nationwid...

add-sub-mul-div|1 year ago

Ken Paxton brings lawsuits against everything, though. Does this one have any merit?

travisporter|1 year ago

"In 2021, the 21-page Corporate Transparency Act was tucked into a sweeping 1,482-page defense bill passed by Congress over President Donald Trump’s veto."

How?

insane_dreamer|1 year ago

I'm not big on reporting, but arguing that the report is burdensome for small businesses is laughable. The BFOI takes 5-10 min to complete.

LorenPechtel|1 year ago

It doesn't make sense to me that a state court should be able to issue a nationwide injunction.

And what's burdensome about it? (Now, a case could definitely be made for it being stupid duplicated effort. Every year I'm annoyed with FinCen over having to file a form about foreign accounts--almost all of the information also appears on our tax return. However, it's a minute or two of cut and paste once a year, no great burden.)

gamblor956|1 year ago

This was suspended by a federal judge.

It's likely to end up becoming law eventually. The requirements of this rule are not burdensome and they are directly related to the laws that FinCEN was created to enforce.

Also, we have information exchange treaties with multiple countries that require us to collect some of this information. We haven't been upholding our end of those treaties and this law was intended to bring us toward compliance.

vetrom|1 year ago

While complying with our treaties as a nation is good and proper, those treaties remain subordinate to the Constitution. To the best of my knowledge, there is no verbiage in there that permits Congress to authorize a law for the mass collection of information, and the centralization thereof that is not directly pursuant to any of its enumerated powers.

This doesn't even touch the government, as a whole's, less than stellar record as it comes to protecting PII from improper disclosure. CTA, as written and implemented, creates a wide array of real and potential harms. It's bad law, as it stands.

Mr_Bees69|1 year ago

every llc in the county has an address, why tf havent they just sent some mail?

phendrenad2|1 year ago

Does anyone have a real link to this? The current link just takes you to a random government site with zero information specific to a rule that you "must file new report" etc.