Don’t Overlook Corporate Transparency Act Compliance
Question: My accountant and other are telling me there is some federal government filing that I must make by the end of the year. My personal information is being sought. Can you explain what this is all about, whether I have to do it, and what happens if I decide not to? Answer: I believe you are referring to the Corporate Transparency Act. Pursuant to the CTA, entities in existence as of Jan. 1, 2024, have until Dec. 31, 2024, to report their “beneficial ownership” to the Financial Crimes Enforcement Network (FinCEN). Entities formed during 2024 have 90 days to make the report. Entities formed after Jan. 1, 2025, will have 30 days to make the report (the best practice will be to do so as part of the formation of the entity). Note that Congress’ stated goal of requiring reporting of beneficial ownership is to strengthen its anti-money-laundering efforts. The CTA contains 23 exceptions to the reporting requirements. Most of these exceptions will not apply to dental practi...