Category: Corporate Transparency Act


November 9, 2023  |  Carole Clark Isakson

The Corporate Transparency Act (“CTA”) is a federal law that will go into effect on January 1, 2024. Unless a company is exempt from reporting (see below) all business entities formed in the U.S. will need to complete and file a beneficial ownership disclosure form (“BOI”) with the U.S. Treasury’s Financial Crimes and Enforcement Network (“FinCen”). Will it apply to my company? The CTA applies to all entities formed in the U.S. with several significant exemptions, including but not limited to: 1) entities that are already heavily regulated (like banks and insurance companies), 2) large companies with a physical U.S. office and more than 20 employees and more than 5 million per year in revenue, 3) certain tax exempt entities, 4) accounting firms and 5) public utilities. The CTA sets out twenty-three exemptions. In addition to those exemptions, entities that are not created through a filing at a state office do not have to comply with the CTA; those entities include trusts and general partnerships. What timelines apply? Companies created before January 1, 2024 will have an entire year to make the required filing. Entities that are created on or after January 1, 2024 must make the filing within thirty days (this timeline may be extended a month or two, this has yet to be…

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Corporate Transparency Act Fraud Alert

November 7, 2023  |  Carole Clark Isakson

Have you heard about the Corporate Transparency Act? Starting in January 2024, many entities will need to report ownership and management information to FinCEN — Financial Crimes Enforcement Network. This branch of the US Treasury Department collects and examines details on economic transactions to help thwart domestic and international financial crimes. Barna, Guzy & Steffen has been actively educating our clients and business partners about this important law. As people become more aware of the requirements, criminals have seen this new reporting requirement as an opportunity to steal personal information. Keep reading to learn more about how to avoid becoming a victim of fraudulent activity regarding the Corporate Transparency Act. Details from the Treasury Department For your convenience and protection, BGS is sharing this information directly from the FinCEN Website: “FinCEN has been notified of recent fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. The fraudulent correspondence may be titled “Important Compliance Notice” and asks the recipient to click on a URL or to scan a QR code. Those e-mails or letters are fraudulent. FinCEN does not send unsolicited requests. Please do not respond to these fraudulent messages or click on any links or scan any QR codes within them.” Contact Barna,…

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Risks of Non-Compliance

September 19, 2023  |  Carole Clark Isakson

At Barna, Guzy & Steffen, our corporate practice group monitors developments related to the Corporate Transparency Act (CTA). We have addressed various aspects of the CTA in previous blog posts. We recommend reviewing those if you haven’t already done so. Today, we aim to highlight potential implications and risks of non-compliance. Regulations and Disclosures The Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Treasury Department, has recently proposed final rules related to the enforcement of the CTA. The bureau’s primary objective is eliminating corporate anonymity and hindering money laundering activities. While the final regulations interpreting and giving detailed compliance instructions on the CTA are not yet available as of the date of this post, a person will be required to make disclosures to FinCEN starting on January 1, 2024, if the person: participated in forming a corporate entity; or owns more than 25% of an entity; or has significant control over an entity, such as making hiring and firing decisions at the C-suite level. You will also need to report to FinCEN when there are changes to the information in the initial report, such as when you relocate or when the ownership or control of the underlying entity changes. Significant Consequences of Non-Compliance Any individual who intentionally supplies false information or…

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