One of the things that has been troubling to us personally as small business owners is the amount of paperwork that is required to open and maintain a business. We are certain that other small businesses share the same frustration. Much of this is redundant and frequently asked items which depending on the institution or bureaucracy requesting the information can sometimes consume much of our limited man power and time. This is especially frustrating in an era of information technology, which should streamline the sharing of data. Therefore, it was particularly concerning when our accountant reminded us of the impending deadline to fulfill the requirements set forth by Congress under the Corporate Transparency Act.
This federal bill, passed by Congress during the Biden administration, introduced new reporting requirements for small business owners. The law grants the U.S. Treasury the authority to establish the Financial Crimes Enforcement Network (FinCEN), a vast new database containing personal information about law-abiding Americans. This database is designed to be shared widely with other government agencies and even internationally, to support federal investigations and prosecutions.
The reporting requirements affect approximately 33 million Americans involved in managing small entities, including some political organizations. These individuals must provide personal details, such as home addresses, birthdates, and other information like driver’s license numbers, to the federal government. However, certain companies are exempt from these requirements—specifically, those with at least 20 full-time employees or more than $5 million in gross receipts. At first glance, this may seem like a reasonable request for information, especially given that larger businesses are not subject to similar reporting. However, it's worth noting that this data is already accessible to law enforcement agencies for the purposes of "combating money laundering and the financing of terrorism."
So what are the penalties for this seemingly innocuous law that on the surface appears solely for law enforcement? This mandate imposes up to two years imprisonment for failure to report this information to the federal government or failing to update home addresses. Fines can be up to $10,000 for violations. Moreover, a troubling aspect is not only the possibility of harassment by federal agents, fines that could result in loss of business and other personal property, but also of jail time for not filing correctly or on time. Moreover, those convicted of failing this new disclosure requirement will have the effect of taking away the right to own guns by those found to be in violation of the law. The two-year imprisonment under the CTA triggers revocation of the Second Amendment right under a federal gun control statute.
I would also like to make clear that I am not advocating that we just ignore these requirements or laws that we perceive as unfair or unjust. Without laws, society would face chaos and injustice, as people would act based on personal interests rather than a shared understanding of right and wrong. In fact, Paul in Romans 13:1 speaks of the higher powers which includes but is not limited to the civil government as “ordained by God.”
As Christians and those who wish to uphold just principles, we must especially recognize the significance of the phrase "ordained by God," which affirms that all civil governments are ultimately under the authority of the triune God. Paul further explains that civil government is established to support and protect those who do good, while also serving as God’s instrument of punishment for wrongdoers. Therefore, both Paul and Peter, in Acts 5:29, emphasize the need for subordination to God's revealed law, particularly when human ordinances directly contradict it.
This right to lawful means of resistance to unjust laws has been a recurring teaching in the history of the church. Martin Luther, one of the father’s of the reformation, believed that Christians had a moral obligation to resist unjust authority. Dietrich Bonhoeffer who opposed the Nazi regime and Hitler’s tyranny, believed that Christians had a moral obligation of resistance and an act of obedience to God, even if it required civil disobedience. William Wilberforce who led the movement to abolish the slave trade in the British Empire as he saw his efforts to end slavery as a moral duty and an act of obedience to God, resisting the tyranny of the slave trade and the dehumanization it represented.
In the same vein, we also witnessed the brave doctors, researchers, and individuals from all corners of society who demonstrated unparalleled courage in the face of intense opposition during the peak of the COVID-19 pandemic. These tireless pioneers worked relentlessly to share crucial information about alternative treatments that ultimately saved millions of lives. Despite facing mounting pressure and threats from the CDC, FDA, and various government agencies at all levels, they remained unyielding. They continued their scientific inquiries, providing essential insights and offering hope through viable alternatives. Even when confronted with severe professional and personal consequences, they stayed resolute in their beliefs, advocating for alternative approaches and challenging the dominant narrative with unwavering conviction.
While this current law may not reflect the same moral injustice that prompted the resistance of those mentioned earlier, it still raises serious concerns from a Biblical perspective. In 1 Thessalonians 4:11, Paul urges us to "make it your goal to live a quiet life, minding your own business and working with your hands, just as we instructed you before." The FinCEN requirement introduces yet another bureaucratic obstacle that interferes with the ability of entrepreneurs and individuals to peacefully pursue their work. This not only hampers their capacity to provide for their families but also limits their ability to contribute to society and serve their neighbors.
The potential for jail time and harassment by federal agents represents a form of oppression that disproportionately affects small business owners. Larger businesses, with their ample resources and teams of lawyers and accountants, are equipped to meet federal requirements and are often exempt from such burdens such as with the FinCEN reporting. In contrast, the FinCEN mandates impose heavy, oppressive measures on small businesses struggling to survive and compete. History has shown that once a bureaucracy is granted power—no matter how small—it inevitably seeks to expand, leading to even more burdensome and oppressive regulations that will impact future generations of small business owners.
As Christians, if we do not stand up against this oppression using the lawful means available to us, then who will? As followers of Christ, we are called to be agents of justice and righteousness in a world that is too often defined by injustice. We are the "salt of the earth" and the "light of the world" (Matthew 5:13-14), and it is our responsibility to confront evil and advocate for the oppressed. By remaining passive or silent in the face of oppression, we risk neglecting our divine calling. The American Association of Physicians and Surgeons (AAPS) has been courageously fighting in court to challenge this injustice. They have recently filed another brief in federal court, as multiple injunctions overturning FinCEN have been reversed by appeals courts (https://aapsonline.org/aaps-files-for-a-preliminary-injunction-againstmandatory-disclosure-to-fincen/).
Our practice has not complied with these requirements, as we stand in solidarity with AAPS in their legal battle against this injustice. Additionally, there is bipartisan legislation currently making its way through Congress that could temporarily suspend these unjust mandates (https://tax.thomsonreuters.com/news/house-passes-bipartisan-bill-to-delay-corporatetransparency-act-deadline/).
We urge you to join us in refusing to submit to this reporting while the fight continues. If we remain silent, the moral voice necessary to advocate for justice may be stifled, leaving the vulnerable and oppressed without their defenders. Let us all strive to embody the spirit of Isaiah 1:17: "Learn to do good; seek justice, correct oppression; bring justice to the fatherless, and plead the widow's cause.”
Comentarios