Corporate Transparency Act: Are You Prepared?

ARTICLE | October 04, 2023

Congress has enacted a significant new compliance program: the Corporate Transparency Act (CTA). This legislation, set to affect an estimated 32 million entities, mandates the reporting of beneficial ownership information (BOI) in an effort to counter financial crimes such as tax evasion and money laundering. The initial reporting for existing entities will begin on January 1, 2024, and must be completed by January 1, 2025. Entities formed after this date will also be required to report within 30 days of formation.

The implications of the CTA extend to all corners of the business world, including CPAs, who will likely be relied upon by many clients to prepare and file the initial and supplemental reports. With many clients potentially unaware of these new regulations and the penalties for non-compliance being severe, the need for timely communication and preparation is crucial. The article "Corporate Transparency Act: Are You Prepared?" by Nathan George and Ken Horwitz provides a detailed overview of the CTA and its provisions, compliance requirements, potential pitfalls, and the steps CPAs and their clients should take to prepare.

To read the full article co-written by our very own Nathan George, CPA click here.