In 2021, in an effort to curtail money laundering, Congress enacted the Corporate Transparency Act (“CTA”). The CTA will dramatically change the business landscape by requiring mandatory reports from nearly all entities, domestic and foreign.
The current effective date is January 1, 2024, but existing entities do not have to file until the end of 2024. Newly formed entities will have 90 days to file the mandatory reports from the date of formation. Many open questions remain with respect to application of the rules of the mandatory reporting to common circumstances. However, it is important to note that accurate compliance is very important and failure to comply can result in monetary penalties or, in extreme cases, criminal penalties.
Carmody’s Corporate & Business group has been closely following the adoption and regulation of the CTA and can assist you with filings.
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