Ruesch and Company, LLC
  • Home
  • Our Services
  • Contact
  • Our CPAs
  • About
  • Blog
  • Terms

Life and Taxes

Because dead people don't read blogs.

The Government Wants To Know Your Business: The Corporate Transparency Act

1/27/2022

0 Comments

 
Picture
If you are a business owner, the US government would like to get to know your business.

I wanted to take a moment this morning to make you aware of an upcoming broad sweeping requirement that will most likely begin in 2022. The Corporate Transparency Act (CTA) is a historic new law (1/1/2021 with a delayed start) impacting millions of America's existing small corporations and LLCs and other business entities registered to do business in the United States. The CTA also applies to newly formed entities and requires disclosure of personal ownership information to the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN).  
The proposed regulations are still in the comment period, but the comment period ends in February and then Treasury officials will most likely begin to prepare the forms and reporting infrastructure and set the reporting due dates. Willful violations are subject to substantial monetary ($500/day up to $10,000) and criminal penalties, including prison time. Accordingly, you do not want to wait to comply once the reporting process is finalized. 
The purpose of the Corporate Transparency Act is to improve U.S. national security by helping to prevent the misuse of corporations and LLCs for money laundering, cyber-crime, fraud, tax evasion, human and drug trafficking, proliferation of weapons of mass destruction and the financing of terrorism. This new legislation marks the first time in history the federal government will maintain a private government database of company ownership for law enforcement purposes. 
Items that will need to be reported include: 
  • “Beneficial (i.e. True) Ownership” and/or “Substantial Control” Information – This includes owners’ full names (and officers’), birthdates, current residential and business addresses and an ID number (valid driver’s license, passport, or government identification) 
  • Certain Business Information – Business Name, EIN, Addresses, etc. 
  • Certain Agent Information – Information about the registered agent and those who helped form the entity. 
There are a few exceptions about which entities will not need to file under the CTA but until the regulations are final, please plan on needing to file. 
It is currently proposed to file an initial filing and one upon any changes to the information included in the initial filing. 
To prepare for compliance, if any uncertainty exists as to the beneficial ownership of a company you are a part of, immediately start identifying who the owners are and gather the needed information to avoid significant civil and criminal penalties. 

Please keep this one on your radar. I will update as more information becomes available.

0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Picture

    Purpose

    This blog allows you to experience the raw, gut wrenching drama of human conflict through accounting in each of its three stages: preparing to do battle, the thrill of victory and the agony of defeat.

    Archives

    December 2022
    February 2022
    January 2022
    November 2021
    June 2021
    May 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    January 2018
    November 2016
    May 2016
    April 2016

    Categories

    All

    RSS Feed

    Contact Us
Copyright © 2016-2022
Ruesch and Company, LLC
​
  • Home
  • Our Services
  • Contact
  • Our CPAs
  • About
  • Blog
  • Terms