On January 1, 2024 (in approximately five months), the Corporate
Transparency Act (CTA) 1 takes effect. In my previous article 2, I reviewed why the Act
was passed, which entities were affected by the Act, who must file,
who is exempt from filing, and when the filings needed to be made.
In this post, I will review what reports need to be filed, the
penalties for not filing, and what businesses should do now to
prepare for the future.
To summarize my previous article, the CTA is designed to enable
the government to monitor companies for possible money laundering,
corruption, tax fraud, and other illicit activities. The way in
which this act will be increasing transparency is by requiring
domestic companies to file documents related to their owners and
employees. Most companies, including LLCs, LLPs, family
partnerships, limited partnerships, business trusts and single
person LLCs will be required to file certain documents with the
Department of the Treasury.
