The Corporate Transparency Act Is Taking Effect: Part 3

This is the final post regarding the Corporate Transparency Act (CTA), which takes effect on January 1, 2024. This piece is preceded by two other articles summarized and linked here. The first post described why the Act was passed, which entities will be affected, who must file and who is exempt, and when filings will be required. The second post outlined what information will need to be filed in order to comply with the Act, who must file on behalf of the entities, and the extensive civil and criminal penalties for not making the required filings.

The CTA was passed to enable the government to monitor smaller companies for money laundering, tax fraud, and other illegal activities. This will be accomplished by requiring certain entities to file documents with the government, which will list the owners and employees who have control over these companies. If the forms are not filed, there are criminal and civil penalties available to the government in order to enforce