The Corporate Transparency Act (CTA) is a new federal law, effective January 1, 2024, requiring millions of businesses in the U.S. to provide FinCEN with details about those businesses subject to a new rule impacting their beneficial owners. Beneficial owners are individuals who exercise substantial control (either directly or indirectly) or own at least 25 percent of a reporting company.
Complying with the CTA raises a number of questions, including how to determine the extent of a company’s compliance obligations and how to collect, store and submit the required information and personal documents pertaining to the beneficial owners.
Bob Ambrogi of legal-industry podcast LawNext talks with Wolters Kluwer executives Ross Aronowitz (Vice President, Law Firm segment, CT Corporation), Ken Crutchfield (Vice President & General Manager of Legal Markets, Wolters Kluwer Legal & Regulatory U.S.), and Cathy Rowe (Senior Vice President and Segment Leader, U.S. Professional Market, Wolters Kluwer Tax & Accounting North America) about the complexities of beneficial ownership reporting, potential consequences for noncompliance, and how a technology provider can assist businesses in submitting accurate filings.
Topics covered include -
- The purpose of the Corporate Transparency Act (CTA)
- Why large companies may not be wholly exempt from CTA reporting requirements
- Beneficial ownership reporting and compliance challenges
- Penalties for CTA violations
- Benefits of using a technology provider (especially with multiple reporting entities)
