BA Supports Repeal of Corporate Transparency Act

Brewers Association Supports Repeal of Corporate Transparency Act

Written By Katie Marisic , Director of Trade, Tax and Federal Government Relations at Diageo

Director of Trade, Tax and Federal Government Relations at Diageo

Katie Marisic dedicated a decade of service to the Brewers Association, most recently as Senior Director of Federal Affairs, during which time she was recognized multiple years as one of Washington’s top lobbyists. Based in D.C., she planned and executed legislative, regulatory, and political strategies to expand the association’s federal affairs presence on Capitol Hill. Prior to joining the BA, Katie was Vice President of Political Affairs at the National Association of Federal Credit Unions, and she got her start in politics working on congressional campaigns during the 2006 and 2008 elections. A Pennsylvania native and longtime craft brewing supporter, Katie helped open Atlas Brew Works in Washington, D.C., in 2013. When she’s not championing the craft brewing community, you can sometimes find her pouring beers at a local tasting room.

February 6, 2025

The Brewers Association (BA) recently joined other trade associations in signing a letter supporting the reintroduction of legislation led by Senator Tommy Tuberville (AL) and Representative Warren Davidson (OH-08) to repeal the Corporate Transparency Act (CTA). This repeal would eliminate the burdensome beneficial ownership reporting requirement for small and independent breweries, as well as other small businesses.

What Is the Corporate Transparency Act?

The CTA applies to nearly all nonprofit corporations, limited liability companies, and other business entities, including small and independent breweries. It requires them to report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of Treasury.

For most existing businesses, the CTA was set to go into effect in January 2025 but has faced delays due to multiple court injunctions.

Why Is the BA Opposing the CTA?

The BA has outlined several concerns regarding the CTA:

1. Upfront Costs to Small Producers

While there is no direct fee to file a Beneficial Ownership Information (BOI) Report, FinCEN estimates that:

The cost of filing an initial BOI can range from $85.14 to $2,614.87, depending on the complexity of a business’s ownership structure.
Filing an updated BOI could cost between $37.84 and $560.81 per report.

These costs represent a significant financial burden for small businesses like independent breweries.

2. Duplicative Regulation and Excessive Penalties

The BA argues that the CTA creates redundant requirements and imposes harsh penalties:

Duplicative Regulation: Breweries already provide much of the information required under the CTA to the Alcohol and Tobacco Tax and Trade Bureau (TTB), another division of the Treasury Department, when applying for a brewer’s notice and then reporting ownership changes.
Excessive Penalties: Businesses that fail to meet the CTA’s reporting requirements face severe consequences, including:
- Civil penalties of up to $591 per day for ongoing violations (adjusted for inflation).
- Criminal penalties of up to two years in prison and fines of up to $10,000.

Why Does this Matter?

Breweries are among the most heavily regulated businesses in the U.S. While the Brewers Association supports compliance with reasonable laws, the BOI filing requirement under the CTA is redundant and time-consuming.

The Brewers Association recognizes that both money and time are limited resources for its members and is committed to advocating on behalf of breweries to protect their businesses from unnecessary regulatory burdens.

Previous BA updates on the CTA: