Congress enacted the Corporate Transparency Act (CTA) in 2021, which will impact almost every one of your clients with LLCs, limited partnerships, and corporations. The CTA seeks to detect money laundering and terrorism by requiring reporting companies to submit certain invasive information to the Financial Crimes Enforcement Network (FinCEN). Your clients’ failure to comply could result in civil and/or criminal penalties.
Please read the attached document for a more detailed description of the CTA – this legislation will have a significant impact on many of your clients. Unless delayed by Congress, those impacted clients will need to take action beginning January 1, 2024. The range of action could require anywhere from a couple of hours of work to many, many hours. It all depends on the number of entities owned or managed by your clients, as well as the layering of entities within entities.
We cannot guarantee that we can assist all of your clients given the volume and fairly limited time constraints. We are going to work with as many clients as we can to prepare for 2024 and then take the appropriate action in 2024. At a minimum, we highly recommend that you notify all of your clients who you think may be impacted by the CTA.
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