Several legal challenges have put this requirement on hold. For now, it is a voluntary process but that could change. Read more about the current on-hold status in the Journal of Accountancy.
Background:
In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law was part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.
As of January 1, 2024 business owners were supposed to comply with the Corporate Transparency Act (CTA). This meant that an initial report must be filed, known as the Beneficial Ownership Information (BOI) report, with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), as well as subsequent reporting when there are changes. There were significant penalties for non-compliance.
Also, see our previous article for more information about who is required to file, exemptions, and how to file, or see FinCEN’s Small Entity Compliance Guide.
Of Note: This is a US Treasury requirement, and and not completed as part of tax preparation and planning by Guidance Accounting. It is up to individuals and corporations to complete or seek out specific services that provide it.
RESOURCES & LINKS
This guide walks small businesses through the requirements in plain language.
Videos and webinars, contact center, and more about how to report.
A comprehensive list of common questions as well as specific situations. .
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