IRVINE, Calif., Jan. 19, 2021 /PRNewswire/ — The Corporate Transparency Act (CTA) will require the owners of a corporation to remain current with the reporting of information to the IRS and other federal and state agencies. It was drafted to deal with perceived abuses to the system involving anonymous corporations. An anonymous corporation is an entity that masks the identity of the person or entity that started or benefits from the corporation. They are the legal entity of choice when criminals seek to launder money or assets or engage in the following illicit activities:
- Drug cartels
- Sex and human traffickers
- Countries seeking to avoid sanctions for financial crimes
- Corrupt government officials laundering money from state or federal funds
The information gathered will be disclosed to law enforcement agencies, financial institutions, and other entities that have mandatory anti-money laundering obligations.
If having your identity disclosed in association with one of these previously anonymous entities creates tax fraud concerns, you have a short window to voluntarily get right with the government and avoid a criminal tax prosecution through a domestic or offshore voluntary disclosure. Our office can help. Call 949 681-3502 or book a reduced rate initial consultation online here.
The owner of a corporation or LLC will have to provide the following information to comply with the CTA:
- The name of the beneficial owner of the company
- The address of the beneficial owner
- The date of birth of the owner
- The driver’s license or ID number of the owner
Additionally, if there is a change in ownership of the corporation, this information must also be reported.
A penalty can be imposed for failing to adhere to the CTA of up to $500 for every day that the corporation is not compliant with the law. If the owner of the corporation is brought up on criminal charges, they may be fined $10,000 and could face up to two years in prison. If the gathered information is disclosed without authorization, the violators could be assessed civil penalties up to $250,000. Additionally, the discloser of information may also be subject to a criminal penalty of five years in prison upon conviction.
See the full version of this article here.
Public Contact: Dave Klasing Esq. CPA, (email protected).
SOURCE Tax Law Offices of David W. Klasing, PC