Valuation Lessons Learned from Connelly vs. United States [PODCAST]
Emmett Mulcahy, Partner and Valuation Services Practice Lead at Redpath and Company, joined Mind the GAAP host, Sean Sullivan, to discuss the impact...
1 min read
Redpath and Company
:
Dec 28, 2023
Melissa Doumbia, manager at Redpath and Company, joined Mind the GAAP podcast host, Sean Sullivan, to discuss the Corporate Transparency Act of 2021 that goes into effect January 1, 2024. The Corporate Transparency Act will have a significant impact on many small businesses regarding personal data they will need to report to the Federal Government. Failure to comply with the new law may result in hefty penalties.
The Act was passed by Congress in 2021 and its intent is to identify beneficial owners of businesses in order to curb fraud and criminal financial activity. While past legislation has typically focused on large corporate businesses, this new law focuses on small businesses and could affect upwards of 33 million entities.
LISTEN TO THIS PODCAST EPISODE:
The Financial Crimes Enforcement Network (FinCEN), a bureau within the US Department of the Treasury, will be responsible for the administration and monitoring of the provided data.
However, if you are a business with more than 20 employees, $5M in total gross receipts, and a physical office in the United States, you may be exempt from reporting.
If you do not meet the exemption tests, you may be required to report and will have to establish an account with FinCEN to begin reporting personal data about all beneficial owners within your organization.
Beneficial owners may be defined by any of the following tests:
Large fines may be assessed for those organizations that do not remain in compliance (e.g., failure to report or failure to update changes to personal information in a timely manner).
For more information, you can visit http://www.fincen.gov/boi-faqs.
If you have further questions, you can visit fel.herbalifa.com/contact and an advisor will be in contact with you.
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