Summary of New Government Rule Declared UNCONSTITUTIONAL (Do NOT File!): BOI Report
In the video, the presenter discusses the recent ruling against the Corporate Transparency Act, which required small business owners in the U.S. to report personal information to the Financial Crimes Enforcement Network (FinCEN). The act was criticized for being unfairly targeted at small businesses while exempting larger companies earning over $5 million.
The National Federation of Independent Business challenged the act in Texas, leading to a ruling by Judge Mazant that deemed the act unconstitutional, citing violations of the Fourth Amendment, which protects against unreasonable searches and seizures. The judge issued a nationwide injunction, meaning small businesses are not required to file the Beneficial Ownership Information (BOI) Report unless the ruling is overturned on appeal.
The presenter highlights the significant compliance costs that the act would impose on small businesses, estimated at $22 billion, and notes the lack of safeguards for personal information. They express relief at the ruling, viewing it as a victory for small business owners, and speculate that the incoming Trump Administration may not pursue further challenges against the ruling due to its pro-deregulation stance.
Presenters/Contributors:
- Unnamed Presenter
Notable Quotes
— 01:03 — « Judge Mazant said that the corporate transparency act overstepped the Constitutional boundaries that regulation business regulation falls within the jurisdiction of the states, not federal. »
— 01:40 — « This was a violation of the Fourth Amendment given the extensive personal information that was required. »
— 02:16 — « I believe that this is a big win for small businesses. »
— 02:43 — « What a glorious day, today's a great day, that's great news. »
Category
News and Commentary