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Corporate Transparency Act

All articles tagged with #corporate transparency act

business1 year ago

Small Businesses Risk $10,000 Fines for Missing Federal Reporting Deadline

Small businesses could face fines up to $10,000 and potential imprisonment for failing to meet a new federal reporting requirement under the Corporate Transparency Act (CTA), which mandates the submission of a Beneficial Ownership Information (BOI) Report to FinCEN by January 1, 2025. The law, aimed at increasing transparency and combating illicit finance, affects over 32 million businesses. Critics argue that FinCEN has not provided sufficient guidance, and a federal court recently ruled the law unconstitutional, temporarily blocking its enforcement.

via Quartz|
#business#corporate-transparency-act#fincen
law1 year ago

Court Halts Corporate Transparency Act Reporting Requirements Nationwide

A U.S. District Court in Texas has blocked the enforcement of the Corporate Transparency Act's (CTA) beneficial ownership reporting requirements, leading FinCEN to state that such reports are now voluntary. The ruling, which deemed the CTA likely unconstitutional, has prompted the U.S. government to appeal. The CTA, aimed at preventing illicit activities through shell companies, requires detailed ownership information from businesses, but enforcement is currently halted nationwide due to the injunction. The case may ultimately be resolved by the Supreme Court.

via Forbes|
#beneficial-ownership#corporate-transparency-act#court-ruling
law1 year ago

Nationwide Block on Corporate Transparency Law Delays Reporting

A federal district court has issued a nationwide injunction against the enforcement of the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting rule, citing potential unconstitutionality. The court found the CTA likely exceeds Congress's powers under the Commerce and Necessary and Proper Clauses, as it regulates domestic rather than foreign affairs. The injunction, resulting from the case Texas Top Cop Shop, Inc. vs. Garland, halts the CTA's January 2025 reporting deadline, providing relief to small businesses. The government may appeal the decision.

via Journal of Accountancy|
#beneficial-ownership#constitutional-law#corporate-transparency-act
legal1 year ago

Nationwide Injunction Halts Corporate Transparency Act Enforcement

A U.S. district court in Texas has issued a preliminary injunction halting the nationwide enforcement of the Corporate Transparency Act (CTA), including postponing the January 1, 2025, reporting deadline for certain companies. The injunction is based on a likely successful constitutional challenge by the plaintiffs. The U.S. Department of Justice is expected to appeal the decision, potentially seeking a stay or narrowing of the injunction. Companies are advised to continue preparing for compliance, as the situation may change if a stay is granted.

via Goodwin Procter|
#appeal#constitutional-challenge#corporate-transparency-act
law1 year ago

Federal Court Halts Nationwide Enforcement of Corporate Transparency Act

A federal court in Texas has issued a nationwide preliminary injunction preventing the enforcement of the Corporate Transparency Act (CTA), which mandates U.S. companies to disclose beneficial ownership information to FinCEN. The court found that the plaintiffs, who argued that Congress overstepped its constitutional authority, are likely to succeed in their claims. This injunction halts the CTA's enforcement, including the January 2025 reporting deadline, pending further legal proceedings.

via Foley & Lardner LLP|
#beneficial-ownership#corporate-transparency-act#federal-court
legal1 year ago

Federal Court Halts Enforcement of Corporate Transparency Act Nationwide

A Texas federal court has issued a nationwide injunction against the enforcement of the Corporate Transparency Act (CTA), ruling it likely unconstitutional. The CTA required millions of U.S. companies to report beneficial ownership information to the Treasury's Financial Crimes Enforcement Network by January 1, 2025. The court found that the CTA overstepped congressional powers and threatened constitutional rights, thus companies are not required to comply with the reporting deadline. The decision is subject to appeal, potentially reaching the Supreme Court.

via The National Law Review|
#beneficial-ownership-information#constitutionality#corporate-transparency-act
law1 year ago

Texas Court Halts Corporate Transparency Act Nationwide

A Texas federal court has issued a nationwide preliminary injunction against the Corporate Transparency Act (CTA), which mandates US businesses to report stakeholder information to the Treasury Department. The court ruled that the CTA exceeds Congress's powers under the Commerce Clause, as it regulates entities regardless of commercial activity. The lawsuit, brought by Texas Top Cop Shop Inc. and others, argued that the CTA's requirements are unconstitutional. The government contends the law is necessary to combat illicit activities like money laundering.

via Bloomberg Tax|
#beneficial-ownership#business-regulation#commerce-clause
finance1 year ago

Navigating the Corporate Transparency Act: Key Deadlines and Compliance Tips

The Forbes Tax Breaks newsletter discusses the low compliance rate with the Beneficial Ownership Information (BOI) reporting requirement, with only 20% of businesses having filed with FinCEN. The newsletter also covers potential changes to the Tax Cuts and Jobs Act provisions set to expire in 2025, including the state and local tax deduction cap. Additionally, it addresses the potential rollback of green tax incentives, such as the electric vehicle tax credit, under President-elect Donald Trump. The newsletter highlights the ongoing debate over the taxation of Social Security benefits and provides updates on tax deadlines and events.

via Forbes|
#beneficial-ownership-information#corporate-transparency-act#electric-vehicle-tax-credit
legal-business1 year ago

"Federal Judges Declare Corporate Transparency Laws Unconstitutional"

A federal district court in Alabama has ruled the Corporate Transparency Act unconstitutional, stating that while the legislation may have sensible goals, it exceeds the limits of Congress's powers under the Constitution. The act requires reporting of beneficial ownership information by businesses, but the court found that it does not fall within Congress's foreign affairs or Commerce Clause authority. The court also rejected the argument that the act is a necessary and proper exercise of Congress's taxing power. The ruling grants a motion for summary judgment in the case of National Small Business United v. Yellen, and the AICPA continues to push for suspension of the reporting rule.

via Journal of Accountancy|
#beneficial-ownership-information#corporate-transparency-act#federal-court
politics1 year ago

"Federal Court Strikes Down Corporate Transparency Act Disclosure Provision"

A federal court ruling in Alabama has barred the Treasury Department from collecting personal details about small business owners as required by the Corporate Transparency Act, a law aimed at combating money laundering. The judge deemed the ownership reporting requirements as a case of congressional overreach, siding with the National Small Business Association in their lawsuit. The Justice Department is expected to appeal the ruling to the 11th Circuit Court of Appeals in Atlanta.

via The New York Times|
#corporate-transparency-act#judges-ruling#money-laundering
business-politics2 years ago

"Unintended Consequences: Small Businesses Caught in the Crosshairs of New Corporate Transparency Laws"

Small businesses are now required to disclose ownership information under a new anti-money laundering law, but investment vehicles like venture capital funds and private equity funds are exempt from the same rules after heavy lobbying. The exemption has been criticized for undermining anti-corruption and counterterrorism efforts. The Treasury Department's final rules extended the exemption to subsidiaries of banks, venture capital funds, and investment companies. While some hail the Corporate Transparency Act as a crucial anti-money laundering law, others argue that the exemption for investment vehicles poses a high risk of money laundering and terrorist financing. Some states are now taking steps to address private investment transparency, and the Treasury Department plans to release new anti-money laundering safeguards.

via The Lever|
#anti-money-laundering#business-politics#corporate-transparency-act
business-law2 years ago

"Small Businesses Across Multiple States Face New Reporting Requirements"

Most Alabama small businesses are now required to disclose ownership information to the federal government under the Corporate Transparency Act, with exemptions for larger entities. The new law aims to prevent money laundering but has raised concerns among small business owners about the burden of compliance, potential penalties, and the need for constant updates on ownership changes. The law has sparked worries and additional costs for small businesses, with many questioning who will take responsibility for filing and monitoring the required disclosures.

via 1819 News|
#alabama#business-law#corporate-transparency-act
business2 years ago

"Unintended Consequences: How Small Business Owners in Colorado Could Be Caught by New Money Laundering Law"

A new federal law, the Corporate Transparency Act, requires almost every business entity in Colorado to register with the Treasury Department's Federal Crimes Enforcement Network or face steep penalties, in an effort to catch money launderers. This law applies to LLCs, DBAs, and corporations of any size, and individuals with at least a 25% ownership in a company or who manage a company must file a Beneficial Ownership Information report or face fines and potential prison time. Small business owners, including independent artists, may be caught off guard, but they have until the end of the year to comply if their businesses were established before Jan. 1, and new businesses have 90 days. The database is non-public and only accessible by law enforcement, and while the penalties for noncompliance are steep, they are specifically for willful failure to file.

via CBS Colardo|
#business#colorado#corporate-transparency-act