The Corporate Transparency Act is BACK! The CTA is ON!
Yesterday, a Texas federal district court lifted the last remaining stay on enforcement of the Corporate Transparency Act (“CTA”).
Within the past few hours, the Financial Crimes Enforcement Network (“FinCEN”) issued new deadlines.
Because of this, affected small corporate entities have until March 21, 2025, to file the necessary information with FinCEN.
If you ignore this and you are an affected LLC, S corporation, or C corporation (most small businesses are) and you do not report information regarding the entity and the “beneficial owners” you will be subject to fines of up to $591 a day and potential federal felony prosecution come March 22.
For more background on the CTA read this. Please take this seriously!
What to do about CTA Compliance
My recommendation: Ask your accountant, attorney, or financial advisor if they can help (the answer will likely be “no”). At Mason Law, PC, we made the decision that we could not efficiently offer reporting services. Therefore, I have been advising people to use Perfect Form, LLC. Mason Law, PC has used them. The pricing is quite reasonable. The data entry portal is very user-friendly. And, no, I don’t have any connection with them. Perfect Form, LLC.
My CTA Editorial
Congress enacted the CTA over a presidential veto on December 11, 2020. Drafters buried the CTA deeply in the huge National Defense Authorization Act of 2021. Supporters say that it will be a tool for policing money laundering, terrorist financing, and other nefarious financial conduct. It will also bring the US in line with other European-style enforcement measures.
However, we aren’t Europe. The CTA will force over 32 million small businesses, the vast majority of whom are law-abiding, to divulge information and keep it updated. I believe in cracking down on money laundering and such, but is this overkill?
Alabama Senator Tommy Tuberville re-introduced the Repealing Big Brother Overreach Act to repeal the CTA (it was too late in the last Congress to advance). North Carolina senators Tillis and Budd are co-sponsors. Ohio Representative Warren Davidson re-introduced the bill in the House, with North Carolina’s Edwards, Foxx, Hudson, Rouzer, and Murphy co-sponsoring. President Trump might be amenable to signing the repeal (after all, he was the president who vetoed it the first time around).
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