Tax Notes Talk Corporate Transparency Act Update: Treasury’s Announcement
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Mar 14, 2025 Melissa Wiley, a Partner at Kostelanetz LLP, brings her expertise on the Corporate Transparency Act to the forefront. She discusses the Treasury's recent decision to halt penalties for domestic companies, raising important questions about regulatory gaps. Privacy concerns regarding reporting are highlighted, as individuals struggle to protect personal information. Wiley also examines the potential impacts on American taxpayers and small businesses, amidst ongoing legal challenges and the complexities of compliance in an evolving landscape.
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CTA Overview
- The Corporate Transparency Act (CTA) aims to uncover the actual owners of entities, like LLCs and partnerships.
- This combats money laundering, terrorism financing, and tax evasion.
CTA Exemptions and Impact
- Many well-regulated entities, such as publicly traded companies and banks, are exempt from CTA reporting.
- The CTA primarily affects smaller entities like photography businesses or consulting firms.
Maintaining CTA Compliance
- Maintain updated information, as any changes to reported data require a 30-day update.
- This includes changes in ownership, addresses, or other entity details.