Small business owners in the US are required to report their financial information to avoid severe penalties under federal law. The Corporate Transparency Act, which went into effect in January 2024, mandates that eligible businesses submit a Beneficial Ownership Information Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) by January 1, 2025.
Failure to comply can result in up to two years imprisonment and fines up to $10,000, as well as civil penalties of up to $591 per day. Many business owners are unaware that they need to report under the new law, which was created to combat illicit activity such as tax fraud, money laundering, and financing for terrorism.
To check if a business is required to report, you can search online for information about your company’s registration with the secretary of state. Even inactive businesses must file, according to accountants at Mizick Miller & Company. The U.S. Chamber of Commerce recommends that all eligible businesses take action before the deadline.
Business owners who fail to comply risk facing serious consequences, including imprisonment and significant fines. Those unsure about the process should contact their attorney or accountant for more information.
Source: https://eu.usatoday.com/story/money/2024/12/05/new-federal-law-small-business/76745556007