NEWS | NSBA, Small Business Community Urges Treasury to Purge Beneficial Ownership Reports from Corporate Transparency Act Database
- NSBA
- 52 minutes ago
- 2 min read
NSBA continues urging the Administration and Congress to formalize a full repeal of the unconstitutional Corporate Transparency Act (CTA) for its undue, unnecessary reporting requirements exclusively for small businesses.
JAN. 20, 2026 | This week, NSBA and a number of other small-business organizations sent a letter to Treasury Secretary Scott Bessent urging Treasury to immediately purge any information submitted by domestic companies under the Corporate Transparency Act (CTA) that are no longer required to file.
The coalition also urged Treasury to move quickly on a final rule to codify their March 2025 rule that exempted all domestic businesses from filing Beneficial Ownership Information (BOI) reports.
Prior to Treasury’s March 2025 interim rule, an estimated 16 million domestic companies had already submitted BOI reports which contain detailed, sensitive personal information including passport or driver's license numbers. That information is being maintained by the Financial Crimes Enforcement Network (FinCEN), exposing those small businesses who filed to ongoing cybersecurity risks.
NSBA filed the first national lawsuit against the CTA in November 2022, however, there are now 12 federal cases circulating over the CTA. In late December, the Eleventh Circuit Court of Appeals ruled against NSBA in its lawsuit, citing that Congress was within its power to enact the CTA. While this decision could make way for enforcement of CTA in the future, today, U.S. small business do NOT have to file any new beneficial owner reports thanks to Treasury’s March 2025 rule.
With regards to the data already collected, NSBA and the coalition urged in their letter for a more concrete timeline of when that data will be disposed of, stating, “Main Street businesses deserve certainty and to know their personal information will not be warehoused indefinitely awaiting a new Administration and a change in policy.”
Please click here to view the full letter.
