On December 23, 2024, a U.S. Court of Appeals in Texas reinstated the beneficial ownership reporting requirements of the Corporate Transparency Act. Small businesses have until Jan. 13, 2025, to file their reports or potentially risk civil penalties of $591 per day and criminal penalties and fines of up to $10,000.
Earlier in December, a judge had halted the requirement, but the late December ruling reverses that. While an appeal is possible, the reporting requirements are and would remain in effect. Even if the case were to go the U.S. Supreme Court, “that will take a long time so holding off is not that smart,” says Joe DeLoach, OD, president and CEO at Practice Compliance Solutions. “It is true that enforcement could be slow in coming but never trust the government to be your friend, especially in the area of healthc are compliance. Registration is very easy and totally free,” he says, in advising all eye care corporations to take these steps as soon as possible.
The Corporate Transparency Act was passed in 2021 to crack down on money laundering by ensuring that corporations list the owners who benefit from the activities of the organization.
The U.S. Chamber of Commerce offers this guide on the process.
It is essential to include the following:
- Your company’s full legal name
- Business street address
- The state of incorporation and/or formation
- A taxpayer identification number and an identity document, such as a filed Articles of Incorporation
- Beneficial owners’ full legal names and birth dates
- Beneficial owners’ home addresses
- A photocopy of beneficial owners’ U.S. driver’s license or passport
There are a very few exemptions for tax-exempt entities and limited others, almost none of which would apply to eye care practices, Dr. DeLoach says.
The reporting is handled through the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The agency offers a five-minute demonstration video on how to report this information.
Use this landing page to start the reporting the process.
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