Starting January 1, 2024, a significant number of businesses will be required to comply with the Corporate Transparency Act (CTA). The CTA requires the disclosure of the beneficial ownership information (otherwise known as “BOI”) of certain entities from people who own or control a company.

It is anticipated that 32.6 million businesses will be required to comply with this reporting requirement. The intent of the BOI reporting requirement is to help US law enforcement combat money laundering, the financing of terrorism and other illicit activity.

The CTA is not a part of the tax code. Instead, it is a part of the Bank Secrecy Act, a set of federal laws that require record-keeping and report filing on certain types of financial transactions. Under the CTA, BOI reports will not be filed with the IRS, but with the Financial Crimes Enforcement Network (FinCEN), another agency of the Department of Treasury.

We have included a link below to the Financial Crimes Enforcement Network’s guidance on this reporting requirement.

Small Business Resources | FinCEN.gov

The information to be reported arises from determinations that are primarily legal in nature. As WebsterRogers is not engaged in the practice of law, we are not able to assist in preparing or submitting this report. We encourage you to consult with your legal counsel.

Sincerely,

WebsterRogers LLP