The U.S. Treasury Department has mandated that 32 million businesses file new ownership reports by January 1, 2025, or face penalties including $10,000 fines and potential jail time. This requirement, part of the Corporate Transparency Act aimed at combating money laundering, is estimated to impose a total compliance burden of 11 hours per business. Critics argue that the federal government could more efficiently obtain corporate registration information directly from states, rather than imposing this extensive paperwork on small businesses. Some small business advocates view the requirement as a tactic that benefits business formation companies, which may charge around $500 to assist with the filing process. The move has sparked significant backlash, with many expressing frustration over the perceived bureaucratic overreach and its impact on small business operations.