We previously reported in January 2024 that Congress passed the Corporate Transparency Act (CTA) to crack down on money laundering and other illicit financial activity. This new law requires every small business (other than those which are exempt) to file a Beneficial Ownership Information Report (BOIR) with the Treasury Department’s Financial Crimes Enforcement Network (FINCEN). Businesses with more than 20 full-time employees and collections over $5 million per year, or those which are inactive are exempt.

While other advisors expected this new filing requirement to be rescinded, that’s not happening. Rather, the filing deadline is on or before January 1, 2025, for existing businesses (including dental practices and real estate partnerships) and 90 days after formation for new businesses formed in 2024.