by: Ginger Toll
If you are or recently were a business owner, this article is of the utmost importance! Deadlines are looming and we wanted to ensure you are fully aware and prepared.
The Corporate Transparency Act, despite challenges to its constitutionality, is still very much intact and being enforced. FinCEN estimates that of the 32.6 million businesses operating in the U.S. required to comply with the CTA, only a small number have already filed their Beneficial Ownership Information Reports (“BOIRs”). Moreover, with new FinCEN guidance, companies that existed at the beginning of 2024 and then dissolved during the year must file a BOIR unless they are otherwise exempt.
There is much to know about this, but below are some bullet points and key requirements that you should be aware of if you own a business.
*Civil Fines Increased – Civil and Criminal penalties can co-exist for any violation of the CTA, meaning the company and you are both eligible for penalties, both monetarily and criminal.
* Dissolved Entities – Companies that were not completely, formally, and irrevocably dissolved by Jan 1, 2024, must file a BOIR (unless you meet one of the 23 exemptions)
*EIN/TIN Not Required – Neither are required to file a BOIR and be in compliance with the CTA
*Initial Deadline Imminent – Reporting companies that are NOT exempt must file their BOIR with FinCEN by December 31, 2024 (2 short months away)
In short, if you and anyone you know meets the criteria of a reporting company, PLEASE file as soon as possible to avoid steep fines or worse! United States Department of the Treasury Financial Crimes Enforcement Network | FinCEN.gov
