Accounting Today Quotes Niles Elber on Corporate Transparency Act

The Corporate Transparency Act's beneficial ownership information filing requirements, although new this year, have been on the books for several years. While most accounting professionals are aware of them, the majority of business owners who may be affected are likely to be, at best, dimly aware of their applicability. And most accountants have unanswered questions regarding the rules.

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Companies already in existence at the beginning of 2024 have until year-end to file, but new companies, those formed in 2024, have 90 days. And while there is normally a small-business exception, in this case the exception is for large companies, such as publicly traded companies, since they already know who you are. But small businesses that are used to being exempt from such requirements may be caught unaware of the obligation to file.

"If they don't have routine interaction with professionals and haven't heard of the Corporate Transparency Act, they will miss their obligation almost from the beginning," said Niles Elber, a Member at law firm Caplin & Drysdale.

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