Tax Tuesday: Corporate Transparency Act-Beneficial Ownership Reporting

Description

The Corporate Transparency Act (CTA) was enacted into law in 2021. The CTA mandates that millions of entities report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). The requirement is for all domestic and foreign entities to file, unless they meet specific exclusions. While these filing requirements are not a part of a typical service engagement, your clients will likely have entities subject to these requirements and they may look to you for advice on how to comply, so it's important to understand the requirements and be prepared to make your clients aware. For entities already in place as of Dec. 23,2023, they must file their reports by Jan. 1, 2025. For new entities starting after Dec. 31, 2023, the reporting must be filed in 30 days. It's important to note that failure to file will have monetary and potential criminal penalties.

Highlights

• What entities are subject to BOI reporting? • What are the deadlines for reporting? • What if any are practitioners' responsibilities? • Recommendations for advising your clients.

Objectives

• Determine how BOI reporting affects you and your clients. • Recognize entities for which BOI may be required. • Identify situations where you should inform your clients of this issue.