COUNSELOR’S CORNER New Corporate Ownership Reporting Requirements for Entities Uncle Sam Wants To Know Who is Behind That Corporate “Veil”? JULIE CARDOSI, ESQ. Law Office of Julie A. Cardosi, P.C. A federally mandated requirement impacting reporting obligations for millions of businesses took effect Jan. 1, 2024, requiring certain limited liability companies (LLCs), corporations and other entities (subject to exemptions) to file beneficial ownership information reports with the U.S. government under the Corporate Transparency Act of 2021 (CTA). CTA was enacted by Congress in 2021 to help prevent and fight money laundering, corruption, and financial and tax fraud. In implementing CTA, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) published a rule extending the reporting timeline for “Reporting Companies” formed after Jan. 1, 2024, but before Jan. 1, 2025, following FinCEN’s Beneficial Ownership Information Reporting Rule (BOIR Rule) which outlines requirements pertaining to who must file, what information has to be reported and when reports must be filed. LLCs, corporations and other business entities must be aware of and ensure their compliance with the BOIR Rule requirements, if applicable. Noncompliance can lead to the imposition of costly penalties. Entities must evaluate whether the rule is applicable to them, specifically whether they fall under the definition of a “Reporting Company.” They must 10 Illinois Automobile Dealer News
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