“Navigating the Corporate Transparency Act (CTA).”

  • “Navigating the Corporate Transparency Act (CTA).”

    Posted by Kesha on January 15, 2024 at 9:48 PM

    Do you use an LLC to own a rental property or operate a business? If so, you likely face the new filing requirement by the Department of the Treasury’s financial intelligence unit, Financial Crimes Enforcement Network (FinCEN), including big penalties and possible prison time for failure to file. More on this later. Here’s the broader question posed by the new law: Are you the owner (or one of the owners) of a corporation, limited liability company, limited partnership, or other business entity? If so, you need to get ready for the coming of the Corporate Transparency Act (CTA).

    1. After years of delay, the CTA is scheduled to go into effect for small businesses that exist on January 1, 2024. Reporting for such businesses must be completed before January 1, 2025.

    2. For what’s required for new business entities that don’t exist today but that will be formed during 2024, see Beware: New 2024 Businesses and Rentals Trigger FinCEN Filings. Businesses that have to report and that are in existence on January 1, 2024, must file, on or before December 31, 2024, a beneficial owner information (BOI) report with FinCEN. Penalties for Non-Compliance To make sure you are paying attention, the government has put in place severe penalties for non-compliance:

    3. Civil penalties of up to $500 for each day that a violation continues, capped at $10,000 · Potential criminal penalties, including imprisonment for up to two years for any person who willfully (a) provides, or attempts to provide false or fraudulent beneficial ownership information, or (b) fails to report complete or updated beneficial ownership information to FinCEN.

    Visit irs.gov or https://www.fincen.gov/ for more information.

    Kesha replied 5 months ago 1 Member · 0 Replies
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