Biden’s Corporate Transparency Act becomes effective Jan 1 – more government reporting and more government overreach.
The Corporate Transparency Act is another way that the government wants to own you. This Act becomes effective on Jan 1, 2024 and is applicable to millions of companies doing business in the US.
Reuters reported on the new law in October:
The Corporate Transparency Act (CTA), enacted in 2021, was passed to enhance transparency in entity structures and ownership to combat money laundering, tax fraud, and other illicit activities. It is designed to capture more information about the ownership of specific entities operating in or accessing the U.S. market.
The law was largely ignored by accounting professionals at first. However, the effective date of the Corporate Transparency Act is fast approaching on January 1, 2024, and people are starting to panic.
Companies are looking for more information on the Corporate Transparency Act, how it affects their operations, and what the details of the reporting requirements are. This presents a unique opportunity for accounting firms and tax accounting professionals to enhance their revenue streams by diversifying their service offerings.
According to a recent Small Business Administration report, 27,104,006 small businesses were termed “nonemployer firms” and had no employees. The Corporate Transparency Act is designed to improve business activity transparency through the reporting of Beneficial Ownership Information (BOI) and is particularly targeted to these smaller businesses.
Tax and accounting professionals may be happy about the new law but companies see it as another intrusion by the federal government into their operations.
The law requires that reporting be made to FinCEN.
The beneficial owners must report to FinCEN their name, date of birth, address, and unique identifier number from a recognized issuing jurisdiction and a photo of that document. If an individual decides to file their information to FinCEN directly, they may be issued a “FinCEN identifier” which can be provided on a BOI report instead of the required information.
FinCEN is an entity under the US Treasury Department that manages the reporting of financial data required from various entities through legislation.
One report that is sent to FinCEN are suspicions activity reports.
Financial institutions are required to file a suspicious activity report to the Financial Crimes Enforcement Network (FinCEN) no later than 30 calendar days from when it detects a suspicious transaction that could have links to money laundering or terrorism financing.
Hundreds of SARs were reported against Hunter Biden and were covered up by the corrupt government to protect Joe Biden.