Federal Compliance Links

2024 12 03 Federal Court Enjoins Enforcement of the CTA Nationwide;
Reporting Companies “Need Not Comply” with January 1 Deadline

“On December 3, 2024, a Texas-based federal court issued a sweeping order prohibiting the federal government from enforcing the Corporate Transparency Act (CTA) anywhere in the country.

This means that “[existing] reporting companies need not comply with the CTA’s January 1, 2025, BOI reporting deadline,” and that FinCEN cannot enforce any of the CTA’s penalties for willful noncompliance against entities or individuals.”

To read the entire article, Go To: https://natlawreview.com/article/texas-federal-court-blocks-corporate-transparency-act-halts-nationwide-enforcement

Transparency Act (CTA)

A New Federal Law that went into place January 1, 2024 called the Corporate Transparency Act (CTA). The CTA establishes a beneficial ownership reporting requirement for corporations, limited liability companies, and other similar entities formed or registered to do business in the United States. Most new and existing businesses are required to file a Beneficial Ownership Information report with the Financial Crimes Enforcement Network (FinCEN) a bureau of the US Department of Treasury. The CTA allows FinCEN to collect that information and provide it to authorized government authorities and financial institutions.

The Beneficial Ownership Report must be filed with the US Treasury’s Financial Crimes Enforcement Network (FinCEN). Businesses formed before January 1, 2024 have up to one year to complete the filing. Businesses formed after January 1, 2024 must file within 90 days of creation or registration.

FinCen Warning
FinCEN is warning businesses about scammers sending fraudulent notices from third parties requesting information pertaining to this reporting.

Please note: FinCEN will not be sending requests for information containing a llRL link or QR code.

Instead, it is the responsibility of the business or their agent to file the appropriate information directly to the FinCEN portal.

Corporate Transparency Act (CTA)
This is information you need to read.

Intake Form Questions for the BOI/CTA Report
These are the questions you will be answering.

FinCen Contact Information
Contact FinCEN for information and answers to your questions: https://www.fincen.gov/contact
FinCEN Email Address: FRC@fincen.gov
FinCEN Phone Number: 1-800-767-2825

FinCen Resources

Introductory Brochure: https://www.fincen.gov/sites/default/files/shared/BOI_FinCEN_Brochure_508C.pdf

FAQs: https://www.fincen.gov/boi-faqs 

Small Entity Compliance Guide: https://www.fincen.gov/boi/small-entity-compliance-guide

Beneficial Ownership Information Reporting Key Questions: https://www.fincen.gov/boi/quick-reference

Financial Crimes Enforcement Network (FinCEN) (https://www.fincen.gov/boi)

Federal Tax Information For New Business Owners

https://www.irs.gov/businesses/small-businesses-self-employed/starting-a-business
Listed below are links to basic federal tax information for people who are starting a business, as well as information to assist in making basic business decisions. The list should not be construed as all-inclusive. Other steps may be appropriate for your specific type of business.

Information about specific industries can be found on the Industries/Professions Web page.

For information regarding state-level requirements for starting and operating a business, please refer to your state’s website.

What New Business Owners Need to Know About Federal Taxes

• Is it a Business or a Hobby?
• Selecting a Business Structure
• Employer Identification Number (EIN)
• Business Taxes
• Recordkeeping
• When Do I Start My Tax Year?
• Checklist for Starting a Business
• Types of Retirement Plans
• Small Business Publications

Return to the Top

(EIN) Employer Identification Numbers

https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service and you can get your EIN immediately. You must check with your state to make sure you need a state number or charter.

• Do You Need an EIN?
• Do You Need a New EIN?
• How to Apply for an EIN
• How Long Will it Take to Get a Number?
• Lost or Misplaced Your EIN?
• How EINs are Assigned and Valid EIN Prefixes
• Canceling an EIN – Closing Your Account
• What to Do if You’re Assigned an EIN You Did Not Request
• Who is a Responsible Party?
• Report EIN Identity Theft

Check out our Interview-style online EIN application. No need to file a Form SS-4! We ask you the questions and you give us the answers. The application includes embedded help topics and hyperlinked keywords and definitions so separate instructions aren’t needed. After all validations are done you will get your EIN immediately upon completion. You can then download, save, and print your confirmation notice. It’s fast, free, and user-friendly!

All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the “responsible party,” controls, manages, or directs the applicant entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.

Filing for Tax Exempt Status?

It’s best to be sure your organization is formed legally before you apply for an EIN. Nearly all organizations are subject to automatic revocation of their tax-exempt status if they fail to file a required return or notice for three consecutive years. When you apply for an EIN, we presume you’re legally formed and the clock starts running on this three-year period.

Change of Ownership or Structure

Generally, businesses need a new EIN when their ownership or structure has changed. Refer to "Do You Need a New EIN?" to determine if this applies to your business.

Verify Your EIN

If you want to verify your EIN, see the Lost or Misplaced Your EIN page for instructions.

Daily Limitation of an Employer Identification Number

Effective May 21, 2012, to ensure fair and equitable treatment for all taxpayers, the Internal Revenue Service will limit Employer Identification Number (EIN) issuance to one per responsible party per day. This limitation is applicable to all requests for EINs whether online or by fax or mail. We apologize for any inconvenience this may cause.

Return to the Top

Separate Business Bank Account

Why Do I Need A Separate Business Bank Account

You should always present to your clients and prospects a professional image. Therefore, having a separate bank account for your business is important. Let’s take a look at some additional reasons.

• The U.S. Internal Revenue Code requires all Corporations to have a separate bank account. Even though the IRS does not require Limited Liability Companies (LLC) to have one, it is a very good idea.

• The U.S. Internal Revenue Service (IRS) is very insistent about you being able to show them that your business is a real business and not a hobby business. In order to show this, you should have a separate bank account for your business, business cards, well-kept accounting records, and an up to date Corporate Minute Book.

• You must keep your business and personal purchasing and spending separate to make it cleaner and easier for you and your tax preparer at the end of the year.
• You must to keep all your expenditure receipts and be able account for all your deposits.