In a joint letter with Alabama Secretary of State Wes Allen, Mississippi Secretary of State Michael Watson submitted an official request to the Mississippi and Alabama congressional delegations to repeal the Corporate Transparency Act which increases the regulatory burden on small businesses nationwide.

The letter outlines the errors within the policy in addition to the lack of cooperation and effective implementation from the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

"As evidenced by our Tackle the Tape initiative, my administration will vigorously attack the bureaucratic red tape which continues to place an undue burden on Mississippi business owners," said Secretary Michael Watson. "While some of the Act's requirements may be well-intentioned, others appear to be the result of law enacted without much thought or basis."

Under the new Beneficial Ownership Information (BOI) Reporting Rule of the Corporate Transparency Act, businesses with less than 25 employees are forced to report and update beneficial ownership information to FinCEN.

While the Act was passed presumably as an anti-terrorism effort, it exempts large groups of major corporations and nonprofits while imposing steep fines and penalties on American small business owners who are noncompliant, including those who are unaware of the Act’s existence.

Click here to read the full letter
 
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ABOUT BOI:
Beginning January 1, 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) implemented new regulations requiring certain types of corporations, limited liability companies, and other similar entities created in or registered to do businesses in the United States to report information about their beneficial owners (BOI) – the persons who ultimately own or control the company – to FinCEN.

Reporting Requirements:

• If your company was created prior to January 1, 2024, you will have until January 1, 2025, to report BOI.
• If your company is created in 2024, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation is effective.
• If your company is created on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation is effective.

Additional information about the reporting requirements, including answers to questions such as “is my company required to report beneficial ownership information to FinCEN,” “who is a beneficial owner,” and “when do I need to report my company’s beneficial ownership information” is available on FinCEN’s beneficial ownership information webpage, FinCEN.gov/BOI. You may also subscribe to FinCEN Updates for future guidance documents.

All questions regarding this requirement should be directed to FinCEN via their contact form found here or telephone at 1-800-767-2825.