MANDATORY NEW BUSINESS COMPLIANCE REPORTING

In 2021, the Corporate Transparency Act (“CTA”) was enacted. The CTA created new requirements for certain entities to report to the Federal Financial Crimes Enforcement Network (“FinCEN”) starting on January 1, 2024.  As an example, certain Trusts, Limited Liability Company and more may be subject to the new rules and due to its harsh penalties you will want to ensure compliance.  Existing companies must file before December 31, 2024 and new companies must file within 90 days of formation.

In an attempt to combat money laundering and criminal activity, the Corporate Transparency Act (the CTA), recently passed by the U.S. Congress, has made waves because of its onerous and consequential regulations. The CTA requires certain businesses to report beneficial ownership information (BOI) on persons deemed to be “Beneficial Owners” to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). Failure to comply with the CTA can result in heavy civil penalties and criminal penalties of up to two years imprisonment. Importantly, if an individual director, investor, or employee — who is a Beneficial Owner — has not complied with the CTA, the company and its senior officers may be held liable for the violation.

You may be aware that the legality of this law is being challenged currently in the courts in multiple cases and jurisdictions.  Only one case has been decided, with limited application only to the members of the Association that made the challenge.  The case decided that the law was unconstitutional, and the Justice Department has appealed.

This new law is complex and difficult to understand and as such I recommend you engage a service to comply with the new law.  A simple google search will provide several options for your filing needs.  Simply search for “FinCEN Compliance Solutions” or the like to find a suitable compliance company.  Mathews and Mathews Co., L.P.A. does not anticipate filing FinCEN  compliance.