Are you ready for the new reporting obligations under the Corporate Transparency Act?
On January 1, 2021, Congress overrode former President Trump’s veto of H.R. 6395, the National Defense Authorization Act of 2021 (the “NDAA”). Title LXIV of the NDAA enacts the Corporate Transparency Act (the “CTA”).1 The CTA, among other things, requires every business entity that meets the definition of a “reporting company” to make a filing with the Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) identifying its beneficial owner or owners. The CTA also imposes severe penalties on entities that fail to comply with its reporting obligation.
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