{"id":2352458,"date":"2024-10-09T07:55:00","date_gmt":"2024-10-09T11:55:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-law-forces-small-businesses-to-cough-up-personal-data\/"},"modified":"2024-10-09T09:19:11","modified_gmt":"2024-10-09T13:19:11","slug":"new-law-forces-small-businesses-to-cough-up-personal-data","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-law-forces-small-businesses-to-cough-up-personal-data\/","title":{"rendered":"New Law Forces Small Businesses To Cough Up Personal Data"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnew-law-forces-small-businesses-to-cough-up-personal-data%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2352458&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Corporate Transparency Act (CTA)\u200c is a controversial U.S. law requiring\u200b millions of \u200csmall businesses to register and \u2062provide sensitive personal data to the \u2064federal government as part of \u2063an anti-money laundering \u200binitiative. Under the CTA, \u200dbusiness owners must submit private information\u200b such as their names,\u2064 home addresses, and identifying documents like driver\u2019s licenses and\u200b passports to the Financial\u200c Crimes Enforcement Network (FinCEN), a division of the Department of the Treasury. This \u200cregulation impacts \u2062a\u2062 wide range of small entities, placing them at risk of being labeled as non-compliant and facing significant fines or imprisonment if they fail to register by January 1, 2025.<\/p>\n<p>Critics argue that \u200bthe law represents an overreach of government \u2064authority and violates the rights of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/following-the-science-means-ending-restaurant-lockdowns\/\" title=\"\u2018Following The Science\u2019 Means Ending Restaurant Lockdowns\">small business owners<\/a>, particularly\u2064 as it obligates them \u2063to\u2064 report to \u200ba department associated with \u200ccounterterrorism, implying a\u2063 presumption of wrongdoing. The CTA primarily targets \u2062smaller businesses (those with fewer than\u2064 20 employees or less\u200c than $5 million in\u2062 revenue) while large corporations\u2063 are exempt from \u200bthese requirements, raising concerns about unfair scrutiny \u2064and \u200cregulatory burdens.<\/p>\n<p>The\u2063 law has faced pushback, including several \u2064lawsuits challenging its constitutionality. Opponents assert that the \u200bCTA exacerbates government surveillance of ordinary citizens\u200c and undermines the principles of a free market. Many\u200d small business owners remain unaware of \u200bthe law, highlighting\u2064 the \u2062urgency for\u200b awareness and compliance, \u200bas failing to adhere could lead\u2063 to severe\u2064 legal repercussions. The overarching sentiment is that the CTA could significantly jeopardize\u200c the livelihoods of small business owners across the nation.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>The Corporate Transparency Act (CTA) is an aggressive domestic program to federally register millions of unsuspecting small business owners under the guise of an <a href=\"https:\/\/www.dlapiper.com\/en-gb\/insights\/publications\/2024\/03\/federal-court-finds-the-corporate-transparency-act-unconstitutional\" target=\"_blank\" rel=\"noreferrer noopener\">&ldquo;anti-money laundering initiative.&rdquo;<\/a><\/p>\n<p>By the end of this year, Americans will be required to <a href=\"https:\/\/www.nortonrosefulbright.com\/en\/knowledge\/publications\/55b72cd0\/the-corporate-transparency-act-is-here#:~:text=For%20each%20Company%20Applicant%20and,business%20street%20address.)%3B%20and\" target=\"_blank\" rel=\"noreferrer noopener\">hand over their small businesses&rsquo; private data<\/a> &mdash; such as owners&rsquo; names and home addresses &mdash; to the federal government&rsquo;s law enforcement database, operated by the Financial Crimes Enforcement Network (FinCEN), housed under the Department of the Treasury. Such small businesses <a href=\"https:\/\/www.fincen.gov\/boi-faqs#C_1\" target=\"_blank\" rel=\"noreferrer noopener\">include<\/a> limited liability companies, corporations, &ldquo;and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.&rdquo;<\/p>\n<p>They will also be required to turn over personal data, which can include uploading their <a href=\"https:\/\/archive.is\/sWJ3V\" target=\"_blank\" rel=\"noreferrer noopener\">driver&rsquo;s license, passport<\/a>, marriage certificate, and other non-business related information, into this law enforcement database.<\/p>\n<p>This needs to be a front and center campaign issue to protect more than 33 million small business owners, who employ <a href=\"https:\/\/advocacy.sba.gov\/2023\/03\/07\/frequently-asked-questions-about-small-business-2023\/#:~:text=Small%20businesses%20employ%2061.7%20million,46.4%25%20of%20private%20sector%20employees.\" target=\"_blank\" rel=\"noreferrer noopener\">61 million Americans<\/a>.<\/p>\n<p>The Department of the Treasury already has a history of targeting innocent Americans. During the <a href=\"https:\/\/www.reuters.com\/article\/legal\/justice-department-settles-with-conservative-groups-over-irs-scrutiny-idUSKBN1CV1TX\/\" target=\"_blank\" rel=\"noreferrer noopener\">Lois Lerner scandal<\/a>, the IRS was forced to admit that it used political partisanship to specifically target conservative groups. The unelected bureaucracy was ultimately forced to settle with the innocent Americans they targeted.<\/p>\n<p>CTA is the for-profit equivalent of Department of the Treasury&rsquo;s partisan overreach. With the IRS scandal, nonprofit organizations with the word &ldquo;tea party&rdquo; and &ldquo;patriot&rdquo; were targeted and subjected to further scrutiny and\/or outright denial of their tax-exempt 501(c)(3) status. Under the CTA, an overly aggressive anti-Second Amendment bureaucrat could decide to do a word search for &ldquo;gun,&rdquo; &ldquo;firearm,&rdquo; &ldquo;patriot,&rdquo; &ldquo;freedom,&rdquo; or similar, and they would have a ready list of small business owners to target, investigate, and audit. It happened before with nonprofits, and it will happen again with &ldquo;for profit&rdquo; small businesses.<\/p>\n<p>The true goal of CTA appears to be setting up yet another new database of citizens to monitor, observe, and punish. The federal government is moving quickly to implement the CTA, as millions of small business owners in the United States have no idea this law even exists (<a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/3172559\/corporate-transparency-act-compliance-train-wreck\/\" target=\"_blank\" rel=\"noreferrer noopener\">only 13 percent of businesses in California, 5 percent in Ohio, and 4 percent in Pennsylvania have registered<\/a>). Millions of businesses owners face becoming felons in three months unless they comply.<\/p>\n<p>There are currently seven separate lawsuits challenging the validity of the law. Last year, the House of Representatives passed a bill to give businesses more time to comply, but the bill is <a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/3172559\/corporate-transparency-act-compliance-train-wreck\/\" target=\"_blank\" rel=\"noreferrer noopener\">sitting in the Senate going nowhere<\/a>. A recent email from their accountant may have been the first time many businesses realized this law exists. The legal confusion and seeming lack of urgency to inform the public suggest that FinCEN&rsquo;s true intent is to &ldquo;catch&rdquo; millions of small business owners in &ldquo;non-compliance&rdquo; <a href=\"https:\/\/taxlawexpats.com\/the-corporate-transparency-act-explained-beware\/\" target=\"_blank\" rel=\"noreferrer noopener\">so that they can be investigated and audited by Department of the Treasury and punished<\/a>. Serious criminals will not be concerned about paperwork violations. Mandatory compliance is required by January 1, 2025, or business owners will be subjected to hefty fines of <a href=\"https:\/\/www.buckinghamstrategicwealth.com\/resources\/tax-strategies\/the-corporate-transparency-act-what-you-need-to-know-to-avoid-penalties#:~:text=This%20new%20law%20applies%20to,of%20your%20company's%20annual%20receipts.\" target=\"_blank\" rel=\"noreferrer noopener\">$591 dollars per day (or up to 10 percent of a company&rsquo;s annual receipts)<\/a> and up to <a href=\"https:\/\/tax.thomsonreuters.com\/blog\/are-you-ready-the-corporate-transparency-act-becomes-effective-jan-1-2024\/\" target=\"_blank\" rel=\"noreferrer noopener\">two years<\/a> in federal prison.<\/p>\n<h2>Unconstitutional Power Grab<\/h2>\n<p>President Trump <a href=\"https:\/\/www.senate.gov\/legislative\/vetoes\/TrumpDJ.htm\" target=\"_blank\" rel=\"noreferrer noopener\">vetoed this <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pence-national-review-heres-why-dems-for-the-people-act-is-dangerous\/\" title=\"Pence, National Review: Here\u2019s Why Dems\u2019 \u2018For The People Act\u2019 Is Dangerous\">unconstitutional power grab<\/a><\/a>, as part of the <a href=\"https:\/\/www.americanbar.org\/groups\/business_law\/resources\/business-law-today\/2021-may\/the-corporate-transparency-act\/\" target=\"_blank\" rel=\"noreferrer noopener\">National Defense Authorization Act of 2021<\/a>, but his veto was overridden. In an unprecedented <a href=\"https:\/\/www.congress.gov\/bill\/118th-congress\/house-bill\/8147\/text\" target=\"_blank\" rel=\"noreferrer noopener\">act of overreach<\/a>, the feds are moving to collect data on all small business owners, who make up the backbone of the U.S. economy, for reasons that seem murky at best. And the information collected goes to FinCEN, <a href=\"https:\/\/home.treasury.gov\/about\/offices\/terrorism-and-financial-intelligence\" target=\"_blank\" rel=\"noreferrer noopener\">the counterterrorism arm of the Treasury<\/a>. Business owners have to register with a terrorism department. This seems to infer criminality on millions of law-abiding citizens.&nbsp;&nbsp;<\/p>\n<p>Under CTA, for-profit business entities with fewer than 20 employees and under $5 million in revenue are in the crosshairs. But businesses that make more than $5 million annually, or employ more than 20 full-time employees, are <em>exempt<\/em> from this invasive self-reporting requirement that could put owners in prison. That means BlackRock, Amazon, Facebook, Pfizer, etc., can operate &ldquo;business as usual,&rdquo; but &ldquo;Grandma&rsquo;s Donut Shop&rdquo; will be required to show her &ldquo;paper&rsquo;s please&rdquo; if she wants to make a living.<\/p>\n<h2>Massive Economic Surveillance Program<\/h2>\n<p>Business registration and entity creation has always been handled at the state level through State Corporation Commissions. With the CTA, even though a business is a registered entity at the state level, if it does not then self-report and register into a criminal database at the federal level, owners will not be able to operate the business. The federal government is overreaching into a state rights issue and creating a massive database in violation of the commerce clause. State attorneys general in every state should be weighing in on this issue. Unfortunately, their silence is deafening.<\/p>\n<p><a href=\"https:\/\/news.bloombergtax.com\/daily-tax-report\/black-business-owners-sue-to-stop-corporate-transparency-act\" target=\"_blank\" rel=\"noreferrer noopener\">Every <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cuomo-to-partially-reopen-indoor-dining-in-nyc-for-valentines-day-if-positivity-rates-hold\/\" title=\"Cuomo To Partially Reopen Indoor Dining In NYC For Valentine\u2019s Day, \u2018If Positivity Rates Hold\u2019\">small business owner<\/a> in America needs to make their voice heard<\/a> on this issue, and lawyers who care about the future of this country should be lining up to represent them pro bono. CTA is the last nail in the coffin of what remains of the illusion of a &ldquo;free market&rdquo; economy in the United States. It is nothing more than a massive economic surveillance program with no discernable oversight.<\/p>\n<h2>Lawsuits<\/h2>\n<p>A federal judge in Alabama <a href=\"https:\/\/natlawreview.com\/article\/us-district-court-alabama-finds-corporate-transparency-act-unconstitutional\" target=\"_blank\" rel=\"noreferrer noopener\">has already ruled this law unconstitutional<\/a>, yet the federal government continues to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-student-loan-bailout-temporarily-blocked-by-u-s-appeals-court\/\" title=\"Biden&#039;s Student Loan Bailout Temporarily Blocked by U.S. Appeals Court\">move full speed ahead<\/a>. The National Federation of Independent Business (NFIB) has an <a href=\"https:\/\/www.nfib.com\/content\/press-release\/homepage\/small-businesses-file-lawsuit-against-beneficial-ownership-requirements\/\" target=\"_blank\" rel=\"noreferrer noopener\">ongoing legal challenge<\/a> against the U.S. government and the&nbsp;CTA. However, while a ruling bars the U.S. Treasury from enforcing the CTA against NFIB, it does not enjoin enforcement against others. The government has&nbsp;<a href=\"https:\/\/archive.is\/o\/sWJ3V\/https:\/www.forbes.com\/sites\/kellyphillipserb\/2024\/03\/12\/government-files-notice-of-appeal-after-corporate-transparency-act-deemed-unconstitutional\/\" target=\"_blank\" rel=\"noreferrer noopener\">appealed the ruling<\/a>.<\/p>\n<p>In another legal challenge from the National Small Business United (NSBU), the NSBU alleges that Congress exceeded its powers in requiring that small businesses report their beneficial ownership information to FinCEN. This battle could go all the way to the Supreme Court.<\/p>\n<p>Both camps &mdash; Republicans and Democrats &mdash; need to weigh in on this before the November election. This is the most dangerous step the United States has ever taken towards nationalizing small private business ownership under a federal umbrella; a tactic long practiced and executed by Marxist governments. It&rsquo;s time to stand up to this blatant attack on state&rsquo;s rights that seeks to control and destroy the economic lifeblood of America.<\/p>\n<hr>\n<p>      Peter McIlvenna is host and co-founder of <a href=\"https:\/\/www.heartsofoak.org\">Hearts of Oak<\/a>, a free speech podcast based in the United Kingdom. He is chief of staff for Lord Pearson of Rannoch in the House of Lords and served as <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/former-the-five-co-host-bob-beckel-dies-at-73\/\" title=\"Former \u201cThe Five\u201d Co-Host Bob Beckel Dies at 73\">national campaign manager<\/a> for Nigel Farage&#8217;s UKIP party during the local and European parliament elections in 2019.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Corporate Transparency Act mandates small businesses to submit private data to the federal government<\/p>\n","protected":false},"author":3462,"featured_media":2352459,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/10\/3010360699_30189b8624_k-e1727878537613.jpg","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[33758,42626,40524],"class_list":["post-2352458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist","tag-new-law","tag-personal-data","tag-small-businesses"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/10\/3010360699_30189b8624_k-e1727878537613.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2352458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3462"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2352458"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2352458\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2352459"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2352458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2352458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2352458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}