Don’t Blink or You’ll Miss Changes to the Corporate Transparency Act

Written By Mark Zietlow

The Corporate Transparency Act requires almost all small businesses to file Beneficial Ownership Interest Reports every year.  Failure to file a BOIR is punishable by up to two years in jail, civil fines of $500 per day that a BOIR is not filed, and up to a $10,000 total fine. Small businesses would be forced to pay over $22 Billion annually to comply with the CTA and its burdensome requirements and invasion of privacy. 

Small businesses are currently required to comply with the CTA and file BOIRs by March 21, 2025.  Innovative Law Group can help you prepare to file a Beneficial Ownership Interest Report.  Please contact us at mark@innovative.lawyer or elle@innovative.lawyer and we will provide you a checklist to compile necessary information.

To be transparent, the status of the CTA has changed frequently since it was passed on January 1, 2021.  Even with the new deadline, it is clear the CTA is facing an uncertain future.  There are still pending court cases challenging the CTA.  The Trump administration has stated the enforceability of the CTA is not clear.  The House of Representatives has passed a bill that would delay BOIR filing deadlines. 

One of the criticisms of the CTA was that there was no security protection for personal information that was required to be filed with the BOIR.  On December 8, 2024, it was reported that the US Treasury Department suffered a “major” security incident after a China state-sponsored hacker broke into the third-party remote management software it uses.  Corruption in the Department of Treasury has also become obvious during recent investigations.  The security breach and corruption should be taken seriously in deciding the future of the CTA and BOIRs.

Mark Zietlow

Mark has been practicing law for over a decade and has learned that wisdom is power. To live out what he believes, Mark has lectured on legal issues across the state of Michigan to help empower those around him to have a better understanding of the law. Mark served on the board of directors, advisory committees, and cabinets to share valuable information, as well as listening to his community. Mark Zietlow can offer experience and innovation for your business.

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