IRVINE, Calif., January 19, 2021 / PRNewswire / – The Corporate Transparency Act (CTA) requires business owners to stay current when reporting information to the IRS and other federal and state agencies. It is designed to address perceived system abuses involving anonymous companies. An anonymous society is an entity that masks the identity of the person or entity who founded or benefits from the society. They are the legal entity of choice when criminals attempt to launder money or assets, or engage in the following illegal activities:
- Drug cartels
- Sex traffickers and people traffickers
- Countries that want to avoid sanctions for financial crimes
- Corrupt government officials who launder money from state or federal funds
The information collected is shared with law enforcement agencies, financial institutions and other entities that have mandatory anti-money laundering obligations.
If the disclosure of your identity in connection with any of these previously anonymous agencies leads to tax fraud concerns, you will have a short window of time to volunteer with the government and avoid criminal prosecution through voluntary disclosure domestically or abroad. Our office can help. Call 949 681-3502 or book a reduced initial consultation here online.
The owner of a business or LLC must provide the following information to comply with the CTA:
- The name of the beneficial owner of the company
- The beneficial owner’s address
- The owner’s date of birth
- The owner’s driver’s license or ID number
In addition, this information must also be reported if the company changes ownership.
Failure to comply with the CTA of up to may result in a penalty $ 500 for every day that the company does not comply with the law. If the owner of the business is prosecuted, a fine can be imposed $ 10,000 and could be in prison for up to two years. If the information collected is passed on without authorization, the violations can be punished with civil penalties up to $ 250,000. In addition, if convicted, the discloser of information can be sentenced to five years in prison.
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Public contact: Dave Klasing Esq. CPA, [email protected].
SOURCE Tax Law Offices of David W. Klasing, PC