There’s been a lot of talk about the new law. Many are saying that because the feds lost a lawsuit challenging it, that it’s no longer valid and that entrepreneurs don’t have to register.
But nothing could be further from the truth.
The Corporate Transparency Act (CTA) is legislation that went into effect at the beginning of this year. It requires small business owners to complete a registration with the Financial Crimes Enforcement Network (FinCen), telling them who the beneficial owners of their businesses currently are. It’s a national effort trying to stop terrorists from using small business platforms to fund terror campaigns.
A lawsuit was filed by the National Small Business Association (NSBA) on behalf of its members and an owner named Issaac Winkles, tried to nullify the requirement. They argued that the law was over-reaching as it pertained to the powers and oversight of Congress. The court agreed.
Here’s the problem. The ruling only pertains to the members of the NSBA and Mr. Winkles.
All other entities that are reporting companies under the CTA are still required to report their beneficial ownership to Fincen within the required deadlines.
If you were in business prior to the beginning of this year, that deadline is January 1, 2025. Additional information can be found at the following web address.
https://www.fincen.gov/boi
There are additional lawsuits still going through the various court systems trying to negate the law. Whether or not any of them will succeed at the national level is anyone’s guess.
So as of now, unless you were part of the original lawsuit, you’ll need to register.
Let me leave you with this…
I’ve written extensively about the additional $80B budget that the administration originally signed into law for the IRS and how that additional money was negated for fiscal 2024 and 2025. The elimination of the additional budget was signed into law earlier this year, but that hasn’t stopped The Service from going back to The Hill, begging to get it back.
IRS Commissioner Danny Werfel sat for a hearing before the House Appropriation Financial Services and General Government Subcommittee last week defending the 10 year funding program enacted by the Inflation Reduction Act of 2022. He faced tough questions from the GOP Members and more sympathetic ears from the Democrats who were present.
Given the fact that his allowance was docked by an Act of Congress, last week’s theatrics probably won’t go anywhere. But I’m writing about this because I’m constantly amazed by democracy at work.
Only a country like America would allow the subcommittee’s time and taxpayer dollars to be wasted like this. Where’s the Congressional Gatekeeper who looks at The Service and has the temerity to say, “No. Please don’t waste our time?”
I guess that’s why they want to keep raising our taxes…
We’re all going to get through this. Let’s get through it together.
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