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Question on the new Corporate Transparency Act (looking for legal viewpoint)
US Chamber of Commerce ^ | 1/10/24

Posted on 01/10/2024 8:04:59 AM PST by EBH

What Every Small Business Needs to Know About the Corporate Transparency Act

The Corporate Transparency Act (CTA) is going into effect on January 1, 2024, impacting millions of small businesses across the U.S.

Knowing the intricacies of this act and its potential impact is essential for small businesses. Otherwise, they may incur criminal or civil penalties for not filing or updating this report.

What is the Corporate Transparency Act? Enacted in 2021, the CTA aims to combat illicit activity including tax fraud, money laundering, and financing for terrorism by capturing more ownership information for specific U.S. businesses operating in or accessing the country’s market. Under the new legislation, businesses that meet certain criteria must submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), providing details identifying individuals who are associated with the reporting company.

The CTA was established to prevent individuals with malicious intent from hiding or benefitting from the ownership of their U.S. entities to facilitate illegal operations which, according to Congress, is a widely-used tactic that affects national security and economic integrity.

(Excerpt) Read more at uschamber.com ...


TOPICS: Business/Economy
KEYWORDS: cta
The fines are exceedingly hefty if one fails to file.

My thoughts at this point is many small businesses don't know about this.

Second: this feels so very much like 1938 Nazi Germany when the Jews were required to report property

Third: If for some reason you come under scrutiny ...have you given up your 4th Amendment Right by filing?

Fourth: Point of reference this was vetoed and overridden in by President Trump in 2020.

1 posted on 01/10/2024 8:04:59 AM PST by EBH
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To: EBH

The CTA is a clear step toward modernization of the United States’ anti-money laundering legal landscape. It will give law enforcement agencies greater access to the beneficial ownership information of entities than ever before. It will also shift the burden of financial institutions from needing to collect customer due diligence information to being able to obtain it from the federal government. These changes of course come at a cost. The anonymity that private company owners have long enjoyed will be rolled back, and the new compliance costs will be shouldered by companies that are often small businesses.

https://www.americanbar.org/groups/business_law/resources/business-law-today/2021-february/the-corporate-transparency-act/


2 posted on 01/10/2024 8:08:43 AM PST by EBH (America Blackmailed, The True Story of the World War...Coming Soon (1/21-))
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To: EBH

Government is “off the hook.”

They’re just doing whatever they want at this point.


3 posted on 01/10/2024 8:08:51 AM PST by Red6
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To: EBH

This is just another version of making a law that is only enforced against those the gestapo chooses to review.

Do you really think that any Chinese nationals, Nigerians, Russians or even Canadians will be trapped by this new law?

Nope. Death by a thousand paper cuts.


4 posted on 01/10/2024 8:12:59 AM PST by texas booster (Join FreeRepublic's Folding@Home team (Team # 36120) Cure Alzheimer's!)
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To: EBH

It’s best when government and business are very closely aligned. Just ask Mussolini. All inside the government, nothing outside.

How dare you want privacy. The massive compliance regimen is a small price to pay to increase national security. As Fauci said, “now is not the time for making money”.


5 posted on 01/10/2024 8:20:41 AM PST by DesertRhino (Dogs are called man's best friend. Moslems hate dogs. Add it up. And at the very moment young women )
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To: DesertRhino

The Personal Life is dead, history has killed it.


6 posted on 01/10/2024 8:21:57 AM PST by dfwgator (Endut! Hoch Hech!)
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To: EBH

Just pointing out that several states have similar reporting requirements.

I am of the opinion that the timelines are screwed up. The updates should be reported annually within 30 days of the charter/creation anniversary of the business. A standard reporting form (and electronic) should be created to simplify this process.


7 posted on 01/10/2024 8:53:08 AM PST by taxcontrol (The choice is clear - either live as a slave on your knees or die as a free citizen on your feet.)
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To: EBH; All
Thank you for referencing that article EBH.

"Third: If for some reason you come under scrutiny ...have you given up your 4th Amendment Right by filing?"


First, the bottom line...

Consider that political party and media fuss about "obsolete" electoral college is because the electoral college is the only thing stopping the corrupt political parties from establishing a permanent puppet presidency that will unquestioningly sign unconstitutional taxing and spending bills into law.

Tying unconstitutional federal taxing and spending to your concern about the Corporate Transparency Act (CTA) weakening 4th Amendment (4A) protections, consider that the 16th Amendment (16A) not only unthinkingly and wrongly weakened 4A protections imo, but has now also helped to foster the CTA.

"16th Amendment : The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."

The CTA further weakens taxpayers' 4A protections when you consider that probably most federal taxes that citizens now pay under 16A are unconstitutional imo, most federal spending now based on state revenues (citizens' wallets) that corrupt Congress steals from citizens by means of 16A taxes, taxes that Congress cannot reasonably justify under its constitutional Article I, Section 8-limited powers and a few other constitutionally enumerated expenses.

The remedy for the corrupt, constitutionally undefined political parties that have pirated control of state and federal governments...

Democratic and Republican Trump supporters need to be ready NOW to primary ALL incumbent state and federal incumbent lawmakers and executives up for reelection this year, except for MTG, Gaetz & Company (and others?), replacing them with new Constitution-respecting patriot lawmakers who will not only support hopeful Trump 47 to finish draining the swamp, but will also do the following.

New lawmakers need to support Trump in leading the states to put a stop to unconstitutional federal taxes and unconstitutional interference in the affairs of the sovereign states by effectively "seceding" ALL the states from the unconstitutional big federal government by repealing 16A along with the 17th Amendment (17A; popular voting for federal senators).

Consider the repealing of 16&17A as part of reparations for victim taxpayers of the unconstitutionally big federal government for having to pay a lifetime of unconstitutional federal taxes, taxes that Congress cannot reasonably justify under its constitutional Article I, Section 8-limited powers and a few other constitutionally enumerated expenses.

In fact, consider that since one of the very few powers that the states have expressly constitutionally given to the big, bad federal government to dictate peacetime domestic policy is to run the US Mail Service (most federal domestic policy actually based on stolen state powers imo), the worst problem that the country would otherwise be looking at with a new Congress of Trump-supporting freshman lawmakers is arguably that citizens that would get into the habit of lightheartedly questioning if the federal government has shutdown if they receive their mail a few days late.

The definition of insanity is reelecting your beloved career state and federal lawmakers and executives over and over again, expecting those same politicians to find remedies for unconstitutional government policies every time.

Let's not allow ourselves to be fooled for third time in this election year by the corrupt political parties.

Again, consider that corrupt political party and media fuss about "obsolete" electoral college is because the electoral college is the only thing stopping the corrupt political parties from establishing a permanent puppet presidency that will unquestioningly sign unconstitutional taxing and spending bills into law.

8 posted on 01/10/2024 9:33:05 AM PST by Amendment10
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To: EBH

The U.S. federal government has just declared itself the silent partner to every mom and pop shop in the nation, declaring ‘a cut’ or iy will extinguish the busoness and jail the owners.

Hello, Biden Fascism!!


9 posted on 01/10/2024 9:42:17 AM PST by Terry L Smith
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To: Terry L Smith

Well, yeah...it is fascism.

BUT, Trump vetoed this atrocity. It was overridden by Congress!! Biden had nothing to do with this.


10 posted on 01/10/2024 9:49:08 AM PST by EBH (America Blackmailed, The True Story of the World War...Coming Soon (1/21-))
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To: Amendment10

This isn’t about TAXATION, it is about law enforcement having free reign to your accounts and business information without a warrant.


11 posted on 01/10/2024 9:50:23 AM PST by EBH (America Blackmailed, The True Story of the World War...Coming Soon (1/21-))
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To: EBH

since “the act’, also called the schtuping, is titled 2021, it happened on Biden’s time.


12 posted on 01/10/2024 10:06:17 AM PST by Terry L Smith
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To: EBH; All
Thank you for replying EBH.

"This isn’t about TAXATION, it is about law enforcement having free reign to your accounts and business information without a warrant"


The problem isn't just tax fraud mentioned in OP, but tax fraud on unconstitutional federal taxes imo.

"What is the Corporate Transparency Act? Enacted in 2021, the CTA aims to combat illicit activity including tax fraud [emphasis added], ..."

Where liberal judges are concerned, the 16th Amendment is as good an excuse as any to weaken 4th Amendment protections imo.

Patriots need to elect and work with new patriot lawmakers to eliminate both the tax fraud and unconstitutional federal taxes, both issues getting us back to repealing the 16th and 17th Amendments, restoring integrity of 4A by doing so imo.

13 posted on 01/10/2024 10:34:55 AM PST by Amendment10
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To: EBH

My concern is that this will be used less for money laundering and more for audit selection. I can’t help but feel that this will be used to large extent as way to circumvent the defeat of the proposal from last year (earlier this year?) that banking institutions provide the IRS with account data for all accounts which had more than $600 activity. I really think that this information will be used, under the pretext of money laundering investigations, to pull bank records from pretty much anyone with a business.

I would further note that this action impacts ONLY small businesses that have filed some kind of organizational document with their Secretary of State. Businesses operating as Sole Proprietors that have not formed an LLc or Corporation don’t have to report so, if I really wanted to use my business to swap cartel money for “clean” money, I probably wouldn’t have registered with the state to begin with.


14 posted on 01/10/2024 11:01:44 AM PST by Tucsonican
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To: EBH

I think it would behoove (what a word!) all businesses to delay until around September. At that time see what else has happened to clarify things.
I see this CTA thing as another absurd infringements of rights we supposedly had in ages gone by.
BTW - I am wondering if drug dealers and cartel services, prostitutes and shoplifters are exempt. Somehow, I I expect they have special roolz.


15 posted on 01/10/2024 11:09:06 AM PST by Honest Nigerian
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To: dfwgator

Had to look that up. Amazing how great literature warned us.


16 posted on 01/10/2024 12:00:43 PM PST by DesertRhino (Dogs are called man's best friend. Moslems hate dogs. Add it up. And at the very moment young women )
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bkmk


17 posted on 01/10/2024 12:11:25 PM PST by Faith65 (Isaiah 40:31 )
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To: Amendment10

But...my concern is if filing this thing...you give up your 4th Amendment Rights? You may be giving up the ‘probable cause’ protection? There is no probable cause for every small business to need to file this.


18 posted on 01/10/2024 1:00:33 PM PST by EBH (America Blackmailed, The True Story of the World War...Coming Soon (1/21-))
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bttt


19 posted on 02/06/2024 1:47:58 PM PST by Gene Eric (Don't be a statist! )
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