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Treasury Department may fine small businesses $10,000 or more if they don’t file this new report
CNBC ^ | 12/10/2024 | Greg Iacurci

Posted on 12/10/2024 8:16:33 PM PST by SeekAndFind

KEY POINTS

* The Corporate Transparency Act of 2021 requires many businesses to report beneficial ownership information by Jan. 1, 2025, in an effort to curb crime through shell companies.

* About 32.6 million businesses are subject to the new BOI reporting, according to federal estimates.

* Individuals who “willfully” violate the requirement may be subject to fines of $10,000 or more and possible jail time.

* A federal court in Texas temporarily halted enforcement.


Small businesses and their owners could face penalties of $10,000 or more if they don't comply with a new U.S. Treasury Department reporting requirement by year's end — and evidence suggests many haven't yet complied.

The Corporate Transparency Act, passed in 2021, created the requirement. The law aims to curb illicit finance by asking many businesses operating in the U.S. to report beneficial ownership information to the Treasury's Financial Crimes Enforcement Network, also known as FinCEN.

Many businesses have a Jan. 1, 2025, deadline to submit an initial Beneficial Ownership Information Report.

This applies to about 32.6 million businesses, including certain corporations, limited liability companies and others, according to federal estimates.

The Treasury Department did not respond to CNBC's request for comment on the number of BOI reports that have been filed to date.

The data helps identify the people who directly or indirectly own or control a company, making it “harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures,” according to FinCEN.

“Corporate anonymity enables money laundering, drug trafficking, terrorism and corruption,” Treasury Secretary Janet Yellen said in a January announcement of the BOI portal launch.

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


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: 2021; 202501; 20250101; boiportal; cta; cta2021; fincen; fines; irsthugsarefairgame; privacy; report; shellcompanies; smallbusiness; snooping; spying; treasury
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Here’s the kicker: Businesses and owners who don’t file may face civil penalties of up to $591 a day for each day their violation continues, according to FinCEN. That sum is adjusted for inflation. Additionally, they can face up to $10,000 in criminal fines and up to two years in prison.
1 posted on 12/10/2024 8:16:33 PM PST by SeekAndFind
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To: SeekAndFind
It is on hold.

Court Blocks Corporate Transparency Act — A Win For Federalism? Updated

"In Texas Top Cop Shop v Garland et al. (case 4:24-cv-00478 December 3, 2024) , the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act (CTA), questioning its constitutionality and its impact on small businesses."

2 posted on 12/10/2024 8:26:30 PM PST by UnwashedPeasant (I The pandemic we suffer from is not COVID. It is Marxist Democrat Leftism. )
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To: SeekAndFind

It’s been halted. I don’t have a link, but last week a federal court shut it down.


3 posted on 12/10/2024 8:26:49 PM PST by 6ppc (During times of universal deceit, telling the truth becomes a revolutionary act -George Orwell)
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To: SeekAndFind

President Trump and future Treasury Secretary Scott Bessant....

Eliminate this crap after January 20th, please.


4 posted on 12/10/2024 8:28:47 PM PST by july4thfreedomfoundation (Russia? China? Democrats and RINOs are the biggest threat to the survival of America.)
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To: july4thfreedomfoundation

ah yes the financial crimes law that exempts finace related companies


5 posted on 12/10/2024 8:41:20 PM PST by orionrising
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To: SeekAndFind

A “Cure” worse than the disease?


6 posted on 12/10/2024 8:54:33 PM PST by Ex gun maker. (Free thinking is now a radical concept, I will not be assimilated by PC or EV group-think!)
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To: SeekAndFind
Court halts BOI reporting; AICPA urges preparedness
7 posted on 12/10/2024 8:57:22 PM PST by Texas_Jarhead
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To: 6ppc
PING
8 posted on 12/10/2024 8:58:14 PM PST by Texas_Jarhead
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To: SeekAndFind

How many shell corps do the Bidens still have?


9 posted on 12/10/2024 9:06:44 PM PST by TigersEye (If you voted for Kamala you're a squirrel murdering communist!)
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To: SeekAndFind

The data helps identify the people who directly or indirectly own or control a company, making it “harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures except for certain politically connected families.


10 posted on 12/10/2024 9:09:10 PM PST by Texas resident (AMF to BHO)
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To: SeekAndFind

Fair Tax.


11 posted on 12/10/2024 9:14:43 PM PST by logi_cal869 (-cynicus the "concern troll" a/o 10/03/2018 /!i!! &@$%&*(@ -)
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To: SeekAndFind
And this is aimed squarely at small businesses.

The form is not hard to fill out and it gives the federal government no information that they do not already have. It is essentially useless for what they claim it is for.

Personally I regard it as a cash grab like most government actions.

12 posted on 12/10/2024 9:38:59 PM PST by Harmless Teddy Bear ( Not my circus. Not my monkeys. But I can pick out the clowns at 100 yards.)
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To: Texas resident
No. It doesn't.
13 posted on 12/10/2024 9:39:41 PM PST by Harmless Teddy Bear ( Not my circus. Not my monkeys. But I can pick out the clowns at 100 yards.)
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To: SeekAndFind

Hey, someone’s gotta repay our coffers after Biden emptied them.


14 posted on 12/10/2024 10:10:58 PM PST by bgill
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To: SeekAndFind

HILARIOUS-—CONSIDERING HUNTER & BIDEN FAMILY SET UP A NUMBER OF “SHELL COMPANIES”


15 posted on 12/10/2024 11:39:31 PM PST by ridesthemiles (not giving up on TRUMP---EVER)
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To: UnwashedPeasant

BTTT


16 posted on 12/10/2024 11:43:15 PM PST by nopardons
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To: SeekAndFind
I hope that this is one of the first things canned by Elon after January 20th.
17 posted on 12/11/2024 12:28:26 AM PST by Robert357
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To: SeekAndFind

So CNBC puts out a story like this a week after this was blocked by a federal court. Unbelievable even for them. I guess the government is hoping that they can still gather information.


18 posted on 12/11/2024 12:35:24 AM PST by Revel
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To: july4thfreedomfoundation

harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures,”

politicians past and present and thier families are excluded


19 posted on 12/11/2024 2:29:19 AM PST by ronnie raygun
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To: SeekAndFind

If they really want to crack down on shell companies, they should investigate politicians and their so-called non-profit foundations.


20 posted on 12/11/2024 2:36:00 AM PST by Sirius Lee (Gosh, that's swell!)
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