Description
Starting on January 1, 2024, domestic and foreign reporting companies must file reports with the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) identifying all beneficial owners and company applicants as part of the Corporate Transparency Act (CTA). The object of the CTA is to create a database of owners of business entities in the U.S. and aboard to combat financial impropriety by organizations. Failure to comply with the new CTA reporting requirements will result in serious criminal and civil penalties.
Time is quickly running out for companies that have put off this daunting compliance undertaking. As a result, a host of domestic and foreign companies, particularly entities with complex ownership structures, will need to scramble to document what exactly constitutes a “beneficial owner” according to the guidelines and the entities to which this application applies. There are some exemptions aimed at excluding companies that are already subject to substantial state or federal regulation or are considered “large operating companies,” but companies cannot count on qualifying for one of these unclearly defined exceptions.
Don’t miss your last chance to take an in-depth look into what specific information is needed to be disclosed by beneficial owners and their companies, as well as the proper way to collect, process, submit, and update all required data to be compliant. Join us for this 60-minute program that walks you through detailed diagrams and extensive examples to examine problematic scenarios that can occur when fulfilling beneficial ownership information reporting requirements.
Topics include:
1. How the CTA Works
2. What is a Reporting Company, and some special examples
3. The contents of the beneficial ownership report and the “exclusion rules”
4. How to identify beneficial owners:
a) The ownership tests:
i. For corporations: (1) total voting power test, and (2) total value test
ii. For partnerships: total capital test
iii. For trusts: settlors, trustees and beneficiaries
iv. The failsafe rule
b) The substantial control test
5. Some special problems involving exemptions