Beneficial Owner Reporting Reminder
As discussed in our earlier posts, most recently on March 12, 2024, the Corporate Transparency Act requires many business entities to report information about their beneficial owners in a brand-new government database.
It is important for practitioners to make sure that their affected clients are aware of this new requirement. Practitioners must also decide whether to offer services to assist clients in meeting this requirement, but it is vital for practitioners to tell clients about the requirement, even if they are not offering such services, since substantial penalties (both civil and criminal) can apply to those who do not comply with the requirements of this law.
Registration reports for entities that existed prior to January 1, 2024 are due by January 1, 2025. For entities that were created on or after January 1, 2024, the due date is much sooner, as discussed in our post on December 5, 2023.
Now that the tax due date has passed, entities should focus on this filing requirement as soon as possible.
The Tax Year 2023 M+O=CPE Individual Tax Year-End Workshop Reference Book has a detailed discussion of the registration requirement on pages 60 to 67.